A surety bond is a three-party agreement required by law in certain situations. It guarantees that you will fulfill obligations required by a contract, government agency or court order. A surety bond is a form of credit used to pay for any valid claims should you not fulfill your obligation. It is not an insurance policy. Pennsylvania requires bonding for various professions including auctioneers, lottery retailers, pawnbrokers, employment agencies and private detectives.
Complete an application with a local bond agency (see Resources). You will need to provide names, addresses, birth dates and Social Security numbers for yourself, your spouse and any owner that owns more than 5 percent of the company. Provide your business name and address. You must also submit a personal financial statement for everyone listed on the bond application.
Provide information regarding the entity that is requiring you to obtain the bond. This is the obligee. You are typically required to be bonded by a local or state government agency in order to work in a particular field or conduct a particular line of business. List the type of bond required and the amount required.
Pay a premium to obtain your bond. Upon approval of your application, you will be given the amount of the yearly premium.
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