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Vehicles exceeding the legal size and weight limits established by the state must obtain a permit for oversized/overweight loads from the Texas Department of Motor Vehicles (DMV). In some cases, a surety bond must also be purchased and filed with the Texas DMV, so that any roadway damages caused by oversized vehicles can be paid for by making a claim against that bond. If such damages were to occur, the Texas Department of Transportation (DOT) would make the claim against the surety bond and th

In most states, it is required for contractors to get a bond. They act as a guarantee to potential clients that they will live up to specific standards of operation, relative to the industry they are in. What is a contractor's bond in essence? It is a protection for residential or commercial customers against fraud or poor workmanship that is way below industry standards. Whereas performance bonds ensure that the contractor fulfills the terms of a contract, a contractor license bond ensures tha

Understanding the legal and financial protections behind being bonded and insured for businesses and contractors.

Commercial bonds are sometimes also known as a license bond or a license and permit bond. They are generally required by government agencies, whether federal, state, or local. Commercial bonds are generally necessary before a contractor can be licensed to do work in a given geographic location, and since it is an annual bond, it must be renewed each year in succession in order to remain valid. These types of bonds are considered to be low-risk bonds, and for that reason they are both easy to qu

A cost bond is a kind of surety bond that guarantees payment of court expenses. Generally speaking, surety bonds form a legally binding contract, involving three parties: the principal, the obligee, and the surety. The party requesting the bond is the obligee. The party obligated to buy the bond is the principal. With cost bonds, the plaintiff is the principal and the court is the obligee. The bond is backed by the surety, which is an insurance company that ensures payment of claims if the cont

If someone were to ask you the question 'What is a fidelity bond?' you would be on solid ground if you replied that it's a kind of insurance which a business might purchase to protect itself against any kind of losses as a result of employee actions. These actions might be fraudulent actions such as theft, forgery, or criminal trading, or some other type of dishonest act which ultimately causes a physical or financial setback to a company. A fidelity surety bond is sometimes referred to as an '

As a mortgage agent/broker, your clients would be fully protected in case you were to sell real estate to individuals who ultimately were unable to pay off their mortgage, and defaulted. Another element of the mortgage bond definition stipulates that if you break any rules listed in the details of the mortgage broker bond, you could be held liable for any claim made against the bond by investors or purchasers. For a broker to obtain a broker bond, an indemnity agreement must be signed which com

A payment bond is a type of surety bond issued to contractors which guarantee that all entities involved with the project will be paid. A payment surety bond is a legal contract, a type of bond, that guarantees certain employees, subcontractors, and suppliers are protected against non-payment. Other common names for these include 'construction', and 'labor and material'. In government contracting, these bonds are sometimes referred to as 'Miller Act Bonds'. Private construction bonds are either

A surety bond is a legally binding contractual agreement between three parties, all of whom are involved in a work task or project, which will be accomplished by the first of the three parties, known as the principal. The principal is usually a professional contractor offering services to the public for which he has been trained, and has been providing professionally for some period of time. The contractor is hired by a party known as the obligee. The obligee hires the contractor with the under