A statutory bond is a surety bond required by a specific state or federal law. It is not optional. The statute defines who must post the bond, the required amount, and the obligations the bond guarantees. If you do not have the bond in place, you cannot legally operate.
This is different from a bond required by a private contract. A statutory bond has a government body as the obligee, and its terms are set by legislation rather than by negotiation. The obligee and the bond conditions are fixed.
Common Types of Statutory Bonds
Tax Bonds
Federal and state revenue agencies require tax bonds for businesses that collect or remit taxes on regulated goods such as fuel, alcohol, and tobacco. The bond guarantees that taxes will be paid to the IRS, the Alcohol and Tobacco Tax and Trade Bureau (TTB), or the relevant state agency. A fuel distributor in Texas, for example, may need a fuel tax bond before the state issues a distributor permit.
Utility Deposit Bonds
Utility deposit bonds replace a cash deposit that utility companies require from businesses with limited credit history. Instead of tying up capital in a deposit, the business pays a small annual premium for a bond that provides the utility with the same level of security. This is common for new businesses or those with credit challenges.
Wage and Welfare Bonds
Union collective bargaining agreements require wage and welfare bonds. They guarantee that an employer will pay wages, union dues, and fringe benefit contributions on time. Construction companies and other unionized employers frequently need these as a condition of working with unionized labor.
Public Official Bonds
Public official bonds are required for elected and appointed officials who manage public funds. They guarantee faithful performance of official duties and protect public assets from misuse.
Getting a Statutory Bond Quickly
For smaller statutory bonds, the process is simpler than most people expect. Ai Surety Bonding USA handles most statutory bond requests over the phone. Small tax bonds, utility deposit bonds, and public official bonds often qualify for same-day issuance with just a credit check and a completed application: no financial statements, no long turnaround.
Our carrier partners, Liberty Mutual Surety and CNA Surety, write statutory bonds across all 11 of our licensed states. Larger or more complex bonds, such as wage and welfare bonds, typically take a little longer due to union-specific requirements. Still, we manage the process and communicate throughout.
Get a Statutory Bond Quote
► Get a Statutory Bond Quote
► Talk to a Surety Specialist
► Call 281-845-1468