Governmental entities throughout the country require license and permit bonds for certain professions and commercial activities. Generally, these bonds ensure an applicant will perform the activity or work in accordance with the laws, rules, and regulations required by the governmental entity. Thus, underwriters who issue these bonds must become familiar with those laws, rules, and regulations applying to each type of license and permit bond.
Despite their complexity, many of these bonds have small penalties and are often issued with lax underwriting. Most license and permit bonds typically last for two year terms and renew at expiration.
Many compliance bonds on behalf of contractors and tradesmen simply protect the public (their customers) from improper actions, fraud, and failure to adhere to regulations. Examples of tradesmen needing these bonds include private investigators, process servers, plumbers, electricians, and restaurants or bars serving alcohol.
A common license and permit bond our office issues is a process server bond. A process server is someone who gives legal notice to an interested party of a court motion. New York law requires process servers to obtain a license and a bond guaranteeing their compliance in the sum of $10,000.00. Process servers have many responsibilities including keeping track of the exact time and place when they deliver papers or notice.
Because we specialize in bonds for the legal community, we have come across many paralegals and attorney service businesses who require process server bonds. To read the law concerning process server bonds, click here.