Statutory bonds are required by law. They ensure that your business, project, or profession complies with specific statutes or regulations at the federal, state, or local level. These bonds are not optional—they’re a condition of doing business.
At AI Surety Bonding USA, we help companies across the United States stay compliant with their statutory obligations while maintaining smooth business operations.
A statutory bond is a type of surety bond that is required by a specific law or regulation. It guarantees that the bonded party will perform its duties and obligations in accordance with that law. If they fail, the bond protects the public, the government, or consumers from financial loss.
Unlike other commercial bonds, which are tied to a specific job or project, statutory bonds exist because legislation demands them.
They’re required to operate legally in many industries.
They safeguard consumers, taxpayers, or clients from misconduct or financial loss.
A valid statutory bond demonstrates that your company meets legal and ethical standards.
Operating without required bonding can lead to license revocation or financial penalties.
Guarantee that contractors follow state and local licensing laws, pay subcontractors and suppliers, and adhere to building codes.
Example (Texas): General contractors in cities such as Austin or San Antonio are required to post license bonds before permits are issued.
Ensure timely payment of state and federal taxes, such as fuel, alcohol, or tobacco excise taxes.
Example: A Texas fuel distributor may be required to obtain a motor fuel tax bond under state tax statutes.
Required by courts to comply with state judicial statutes, ensuring fiduciary or legal obligations are met.
Examples: Probate, Guardianship, and Appeal Bonds.
Guarantee that commercial customers pay utility bills to municipal or private utility providers.
Example: A Houston manufacturing facility posting a bond to establish a new electricity or water service account.
Required by courts to comply with state judicial statutes, ensuring fiduciary or legal obligations are met.
Examples: Probate, Guardianship, and Appeal Bonds.
Required by the federal Employee Retirement Income Security Act (ERISA) to protect employee benefit plans from fraud or dishonesty by those managing funds.
Guarantee compliance with environmental, transportation, or public health regulations.
Examples:
If a violation occurs, the obligee may file a claim against the bond. The surety may pay valid claims, but the principal must reimburse the surety in full.
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We can help you determine what’s required and secure your bond fast.
