New Jersey surety bonds enable individuals and businesses to accomplish various goals while meeting specific requirements. If you need a bond in the state of New Jersey, you may be fully aware of everything that getting this type of bond involves. However, if you have never needed a bond or applied for one prior to now, you may be curious as to what these kinds of bonds are and what they are generally used for.
Is a Surety Bond an Investment?
Surety bonds are not financial bonds, nor is it an investment in the traditional sense of the word. Instead, a surety is a kind of insurance. Thus, it could be considered an investment in the sense that by purchasing such a bond, you’re investing in your own business. If buying a bond means that you can work in a certain industry or secure more customers, then it certainly could be regarded as an investment.
Definition of New Jersey Bonds
Surety bonds are a legal agreement that involves three parties. The first party is the person or business purchasing the bond. This purchaser is described as the principal in a surety transaction. The second involved party is the obligee. The obligee is the person or entity that requires the principal to obtain a bond. The third party is the surety, which is the company that provides the bond to the principal. Note that an obligee may not always be involved in such a transaction since bonds are not always purchased as a requirement. However, in most cases, people and businesses apply for bonds to fulfill a requirement.
The bond serves as insurance against financial or other loss. In providing this kind of bond, the surety is guaranteeing that the obligee will be reimbursed if a financial loss should occur. If you are the principal in such an agreement, you should know that you will be required to reimburse the surety if they pay out the obligee.
How to Get a Surety Bond in New Jersey
To purchase a bond, you must first complete an application via a surety. The surety will generally perform a check of your references and credit before you may be approved for the bond. You can typically get license and permit bonds even if your credit is bad. However, other kinds of bonds may be more difficult to obtain with bad credit.
Once approved, you will need to pay a certain percentage of the cost of the bond in order to secure it. After you have been approved and signed a contract, you will receive the bond within a relatively short period of time. The percentage of the bond that you are required to pay, as well as the length of time it will take to receive it, may vary depending on the circumstances. Thus, you will need to determine these exact details by consulting the surety bonding brokerage you choose. Let us show you how to get bonded in New Jersey Today. You’re going to love our bonding process.
Exploring Different Types of New Jersey Surety Bonds
You might be surprised to learn just how many different kinds of New Jersey bonds you can purchase. To give you a sense of the variety and usefulness of such bonds, here are a few examples:
- Driver education school bond: this kind of surety might protect you or your customers. By providing this kind of insurance for your customers, you could grow your clientele and expand your business.
- Probate bond: county courts in New Jersey require probate bonds of people appointed to handle the estates of deceased individuals. The type of probate bond needed in such cases depends on the circumstances. If you are appointed to handle someone’s estate, you might need to get an executor bond, an administrator bond or a trustee bond.
- Collection agency bond: if you operate a collection agency in New Jersey, you will need to obtain a surety to remain legally compliant.
- Court Bond: you might need to apply for a court bond if you are the legal guardian of a minor in the state.
- Building demolition permit bond: if you are in the building demolition business, this type of surety bond will protect the public. This bond could provide insurance in case your company fails to follow local and state laws, for example. It could also protect the obligee from unethical decisions on the part of your business, as well as bad financial decisions and the damages that may result.
The Importance of NJ Surety Bonds
Bonds serve a range of valuable purposes. They enable countless businesses to operate and secure customers. In the construction industry alone, a variety of people and entities are protected by surety bonds. Bid bonds work as protection for customers entering into contracts with construction contractors. Performance bonds protect owners against financial loss, and payment bonds protect suppliers, laborers and subcontractors.
Sureties can prevent unqualified individuals from conducting business in certain industries. Bonds also aid in maintaining industry standards, which can be beneficial to private parties, as well as the public at large.
If you are a business owner, you could raise the level of confidence that a potential customer has with regard to your company. In turn, your company could experience a higher volume of business by becoming bonded. New Jersey surety bonds are advantageous to numerous people, businesses and institutions in the state. Without bonding, countless individuals, companies and organizations might suffer serious financial loss and other damages.
Our team provides affordable New Jersey bonds and fidelity bond insurance. All New Jersey bonds are prepared on a specific bond form, as prescribed by the entity requiring the bonding (known as the obligee). Apply for your New Jersey online bonding now by completing our online application. You can also download the application. Learn how to get a surety bond in New Jersey from the bonding professionals.
Below is a list of bond types that are commonly requested in New Jersey.
- Drivers School
- Freight Broker
- Mortgage Broker
- Notary Public
- Private Investigator
- Process Server
- SAG – Screen Actors Guild
- Sales Tax
- Utility Deposit