If you think that surety bonds are required only for big businesses such as large construction companies, auto dealers and mortgage brokers, think again. The main categories of commercial, contract and court bonds, however, branch out in so many directions that sometimes it’s hard to believe that certain enterprises require a surety bond.
Ultimately though, it all comes down to doing fair business and complying with all industry regulations at federal, state and local level.
We’ve introduced you to some unexpected bonds such as the health club bond and telemarketing bond. But here is a list of downright strange surety bonds that are out there and, in certain cases, are a must.
Dog Bite Bond
Falling into the commercial bonds category, the dog bite bond is required when someone’s dog has bitten a human being. Then the owner of that dog has to take all necessary steps to ensure that the dog doesn’t harm other people. The bond is required for certain breeds and requested by some counties.
Dance Studio Bond
Also a type of commercial bond, this one is required to ensure that dancing schools will provide dance instructions as promised. If the studio is caught in any wrongdoing, or fails to offer quality lessons, or for some reason it doesn’t comply with business standards and the expected code of conduct, a paying customer can file a claim. Then he or she will be within their right to cancel the contract and be refunded in full.
Medical Marijuana Bond
This bond has nothing to do with smoking pot. It pertains to licensing a medical marijuana dispensary. Currently, 18 states and Washington D.C. allow medical marijuana prescriptions to be written for particular ailments. Especially Colorado has seen a recent boom in this line of business. And when the responsible government agency detects a significant increase in any business, it begins to look for ways to regulate it. The bond functions more like a tax bond. This means it guarantees that a bonded dispensary will pay all taxes as required. If it fails to do so, the government can make a claim on the bond and collect what is due.
Boxing License Promoter Bond
It’s understood that this license surety bond is meant to protect competing athletes and venue owners from fraudulent practices. It should guarantee that the promoter involved makes all payments agreed upon or promised. It can include sports such as wrestling, kickboxing, mixed martial arts and more. Sometimes it’s called a combat sport surety bond or sports promoter surety.
In some states, boxing promoters may be required to obtain additional bonds, for example a match permit bond that insures a single event; or a tax bond that guarantees that all gross tax receipts owed for promoted events will be paid.
It is sometimes called a dishonesty bond or business services bond. Among the clients purchasing this bond are janitorial companies, security companies, or entities that offer home healthcare, to name but a few. Its overriding aim is to protect the business owner from theft of a customer’s property by employees. It also insures a business against any losses due to an employee’s dishonest acts.
Needless to say, the list of unusual surety bonds doesn’t end here, but the truth about them is out there, so they can be obtained based on the customer’s specific needs.