Commercial Surety Bonds

No matter your commercial surety needs, from simple transactional to sophisticated accounts and programs, you can count on Westfield.

Two men sitting at a desk looking at a tablet.

Find an Agent

What Is a Commercial Surety Bond?

Commercial surety bonds, sometimes referred to as business bonds, ensure that the public is protected from financial loss or damage due to non-compliance, wrongdoing, or misconduct. As with all surety bonds, commercial bonds are a three-way promise between you (the principal), Westfield (the surety), and the party requesting the bond (the obligee). The surety guarantees the obligee that the principal will fulfill its obligations as required.

What Is the Difference Between Commercial and Contract Bonds?

The big difference between these two types of surety bonds is the intended purpose. Contract bonds provide a financial guarantee for contracts used in the construction industry, such as project bids and supply agreements. They are often required when working with regional and local governments. In contrast, commercial bonds can be found in almost any industry and cover everything from a company seeking a working license to individuals involved in court proceedings.

Group of health care professionals in a conference room.

Industries That Benefit

Who Needs a Commercial Surety Bond?

Commercial bonds are needed by many people and companies for a variety of reasons. For example, if you serve as a fiduciary or if you or your company is required to maintain a license, then you probably need to be bonded. Here are the industries we commonly serve as a surety bond company:

Health care
Contractors
Service providers
IT
Financial services
Legal professionals
Food service
Fuel supply and transportation
Janitorial service
Retail services
Waste haulers

Why Westfield

Highlights of Working With Us

Westfield is licensed in all 50 states and can write individual bonds, programs, and accounts up to $50 million.

“A” Rated (Excellent) by AM Best

T-Listed

60 Years of Surety Experience

Types of Commercial Bonds

Now that you know what a commercial bond is, let’s take a deeper dive into the types of commercial bonds your business may need. While there is a large spectrum of bonds out there, here are some of the most common ones.

Court Bond:

The court often requires either the plaintiff or defendant to post a court bond. These bonds are used to demonstrate financial responsibility to the court while the case is being heard.

Examples:

Appeal bond
Attachment bond
Replevin bond
Release of lien bond

Probate or Fiduciary Bond:

These bonds guarantee the good faith of a person appointed to handle another person’s private affairs.

Examples:

Administrator bond
Executor bond
Guardian bond
Trustee bond

License and Permit Bond:

Often required by municipalities, state departments, or the federal government, these bonds guarantee consumer protection before granting licenses to businesses such as electricians, plumbers, and car dealerships.

Examples:

Contractors’ license bond
Motor vehicle bond
Lost or defective title bond
Mortgage bond

Loading component...

Miscellaneous Bond:

Failing to fall into one of the previous classifications, a miscellaneous bond is another type of financial guarantee. It protects consumers from certain forms of breached agreements or contracts.

Examples:

Wage & Welfare Bond
Utility Deposit Bond
DMEPOS Bond
Lost Instrument Bond

Loading component...

Group of business persons discussing a contract in a meeting room.

Bond Types We Offer

Westfield Is a Full-Service Surety Provider

From simple transactional to sophisticated accounts and programs, Westfield is here to support your unique bonding needs. We offer the following bond types.

License and permit bonds
Non-construction performance bonds
Court bonds
Probate bonds
Public official bonds
Financial guarantee bonds
Miscellaneous bonds

Loading component...

Find an Agent

Don’t leave your business promises to chance. Connect with a local Westfield agent today.

FIND AN AGENT

Loading component...

Commercial Bonds

Frequently Asked Questions

How much does a business bond cost?

It depends. A variety of factors can have an impact on the cost of your commercial bond, including the industry you work in, type of bond needed, total value of the bond, your credit score, and your business’s financial history.

How do I get a business bond?

The application process for a commercial bond is not too different from the process of getting a loan from the bank. You’ll have to provide business and personal information, including financial statements and references. This is because the surety bond company wants to ensure your character, capacity, and credit aligns with their business model.

How are commercial surety bonds different from insurance?

A surety bond protects a third party, often the public, from financial loss or damage due to non-compliance, wrongdoing, or misconduct. Alternatively, a business insurance policy protects your business from financial loss if theft, property damage, or injury occur.

Does my small business need to be bonded, insured, or both?

Generally, businesses that are both bonded and insured are more appealing because it reassures the party that requested the bond that they are not only protected, but also working with a reliable and reputable professional. Legally speaking, many states require businesses to carry certain business insurance policies, such as workers’ compensation. Similarly, states or local laws may also require businesses to have certain bonds. Insurance and bond requirements vary based on state, industry, and business activities, so be sure to check with your local Westfield agent.

Why should I choose commercial surety bonds from Westfield?

You want more than a surety provider. You want an industry expert to help you confidently navigate the world of surety bonds. With a strong history of financial stability and more than 60 years of surety experience, you can count on Westfield for common sense underwriting, prompt and personal service, and innovative bonding solutions.

Westfield is licensed in all 50 states and can write individual bonds, programs, and accounts up to $50 million.