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Commercial Surety Bonds

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Commercial surety bonds are required to meet hundreds of commercial obligations, ranging from simple compliance obligations (such as a contractor’s license bond) to more complicated, higher-risk financial guarantees (such as a utility payment bond). Commercial surety bonds also cover individual public officials (such as Treasurers and Tax Collectors) as well as attorneys or other individuals acting in judicial matters.

Click on the links below to learn more about the different types of commercial surety bonds Selective offers.

Judicial Bonds (Fiduciary or Court)
Individual Public Official Bonds
License and Permit Bonds
Miscellaneous Bonds


Judicial Bonds (Fiduciary or Court)

Judicial bonds in general -- and fiduciary bonds in particular -- are required when someone must act in the capacity of someone else, (e.g., an administrator, executor, trustee of an estate or a guardian of a minor). Court bonds are required of individuals or firms involved in legal actions. They are written on behalf of plaintiffs or defendants, with the latter representing the greater hazard.

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Individual Public Official Bonds

Individual Public Official bonds are required by local or state statutes, which also set the amount of the bond. The public officials who typically need these bonds include treasurers; tax collectors; municipal, county or court clerks; secretaries and/or treasurers of school boards and magistrates.

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License and Permit Bonds

License and Permit bonds, usually small in amounts, are required by a governing entity, in connection with a specific license or permit for operating a business. These bonds are very common and are underwritten freely.

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Miscellaneous Bonds

Miscellaneous bonds include: Lost Securities, Utility Payment, Wage & Welfare, Tax, and Toll Charge bonds. These bonds are similar to license and permit bonds, as they are often required by a government body.

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Generally, the Commercial Surety bonds explained above are under $500,000.

Financial stability is one of the most important criteria for selecting a company to provide your commercial surety bonds. Selective is listed among the highest rated sureties for financial strength, with an "A" (Excellent) rating by A.M. Best and an A- rating by Standard & Poor's Insurance Rating Service. We are members of the Surety Association of America, The National Association of Independent Sureties, The Utility and Transportation Contractors Association, and The National Association of Surety Bond Producers. Selective Insurance Company of America is approved to issue U.S. Government Performance and Payment bonds, and has a current U.S. Treasury Limit of $48,914,000 (July 2010) "US Treasury Limit".