The Most Common Surety Bonds in Ohio

Surety Bonds in Ohio - What are Ohio Contractor License Bonds? - Landmarks and map of ohio in circle frames brown background

What are Ohio Contractor License Bonds?

An Ohio Contractor License Bond is a requirement of the state in order to work on any project that exceeds $500. A contractor license bond is required for both commercial and residential projects, so it is important to know when you need one. The bond protects the homeowner from contractors who do not complete their jobs or use shoddy materials. 

An Ohio Contractor License Bond is a type of license bond that contractors in the state of Ohio are required to have. It ensures good faith on behalf of the contractor and protection for their customers, as well as provides a way for a customer to get back the money they paid out if there is a dispute over work done by an unlicensed contractor.

What is Ohio Freight Broker Bonds (BMC-84)?

Ohio Freight Broker Bonds are an “advance payment” for a company that provides freight brokerage services to a firm. The bond is issued by the Ohio Department of Development and is required in order to operate as a broker in Ohio. 

This type of bond is different from other bonds because it does not guarantee repayment if the business fails or defaults on any contracts, but instead ensures that clients will be paid first before creditors through regular payments made by the state of Ohio.

These bonds ensure that any cargo lost, damaged, or stolen will be compensated up to the value stated on the bond. 

The State of Ohio Board of Public Utilities (BPU) requires that all freight brokers have a bond posted with the BPU before they can collect money from customers. The bonds must be renewed every two years and are available at an affordable cost through your local insurance agent or broker.

What are Ohio Motor Vehicle Dealer Bonds?

Ohio Motor Vehicle Dealer Bonds are a type of surety bond that guarantees the state against any losses from a dealership’s financial failure. If a dealer defaults on its obligations to customers, Ohio Motor Vehicle Dealer Bonds ensure that the state is repaid for any outstanding debts and can continue to provide services to its citizens. 

Ohio Motor Vehicle Dealer Bonds also protect dealers from being forced into bankruptcy due to defaulting on their debts with customers or other creditors.

Ohio Motor Vehicle Dealer Bonds are required for all Ohio dealers. A dealer’s bond is a type of commercial surety that guarantees payments to the state, consumers, and creditors in case the dealer defaults on their obligations. The bond can be obtained through an insurance company or with cash deposits.   

The bond amount depends on the size of the dealership, so it varies by each business’ needs. Some dealers may only need $50K while others may need upwards of $500K worth of coverage depending on their inventory size and finances.

What is Ohio Lottery Sales Bond?

The Ohio Lottery Sales Bond is a type of financial security that the Ohio State government requires for any person or entity that wants to sell lottery tickets on behalf of the state. The bond is designed to protect consumers and ensure that funds are available in case legal proceedings arise, such as if someone claims they were defrauded by the licensee.   

For example, let’s say you buy a $2 scratch-off ticket from your corner grocery store. You win $10 million! Unfortunately, you never cashed in your ticket because it was stolen before you had an opportunity to do so. If there weren’t sufficient funds held against this potential claim under this bond program, then taxpayers would be responsible for up to 50% of these losses.

This bond is purchased by insurance companies and paid for with premiums from Ohio citizens. In order to purchase this bond, you must be an authorized agent of the state of Ohio or have permission from one of these agents. If you can’t afford it on your own, there are many organizations in Ohio that will help cover the cost so long as they’re approved by the state and you live in their district.

What are Ohio Business Service Bonds?

Ohio Business Service Bonds are a form of surety bond that guarantees the faithful performance of certain obligations by an individual or business. The most common Ohio Business Service Bonds include bonds for architects, contractors, and engineers. 

Other types of Ohio Business Service Bonds include bonds guaranteeing the performance of fiduciaries who handle funds under someone else’s power or control; fidelity/theft bonds to insure against losses due to dishonest employees; and bail bondsmen licenses. 

Business service bonds are for those who provide services to other businesses. For example, if you work as an IT consultant and your clients include other companies, then you would need a business service bond to cover yourself in case one of them doesn’t pay up. This post will outline the different types of service bonds available and what they do so that readers can decide which is best for their needs.

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