Court Bonds

There are four main types of surety bonds; commercial bonds, contract bonds, court bonds, and fidelity bonds. Court bonds are not as common as commercial or contract bonds, and there are various different types of court bonds. The two main categories of court bonds are judicial bonds and probate bonds. Judicial bonds require a Principal (person required to purchase the bond) to pay a sum of money. Probate bonds require a Principal to perform duties as the laws and courts require.

Judicial bonds are required by a civil court in order to secure funds or assets. They are very difficult to underwrite, as evaluating the result of a court proceeding is rather difficult. The outcome will determine if there is a likelihood of a loss or bonds claim. These types of bonds will often come with a premium and additional collateral requirements. Premiums will not be returned, but if the bond does not have any claims, the collateral will be returned to the Principal after the obligations are fulfilled. There are many different types of judicial bonds including:

  • Replevin Bonds – Replevin bonds are required when a plaintiff is recovering property from a defendant. Courts may require the plaintiff to purchase a replevin bond if the property is returned to the plaintiff before a settlement is reached. This is to protect the defendant’s interests if they were to win the case and have any damages to the property.
  • Injunction Bonds – Injunction bonds are required to prevent a defendant from performing certain acts, such as a restraining order of an employer from an employee. While the court case is being conducted, the plaintiff may be required to purchase a bond in case the court favors the defendant. If the defendant suffers damages from an injunction that prevented them from working (as described above) they may make a claim on the bond.
  • Attachment Bonds – Attachment bonds are purchased by the plaintiff who is often a creditor when a debtor’s property is seized. This ensures that if the court rules in favor of the debtor, the creditor will pay all legal costs and damages suffered by the defendant.
  • Indemnity to Sheriff Bonds – These bonds are used to protect Sheriffs or other law enforcement officers if a court case requires the seizure of the defendant’s personal property by a plaintiff. If an investigation into personal property must be performed by a sheriff, a court can require an indemnity to sheriff bond be purchased by the plaintiff. These bonds protect the Sheriff from any losses or damages incurred while performing the seizure of personal property or being sued.

Probate bonds can also be referred to as fiduciary bonds. A fiduciary is a person or entity that has been granted power over another’s assets and well-being, by a court. A probate bond will be required by a court if an individual or entity is to care for another’s assets or well-being. This subcategory of court bonds includes the following specific bonds:

  • Administrator Bond – An administrator bond is required in the event that a will does not name an executor to ensure the will is carried out as intended.
  • Executor Bond – An executor bond protects the estate and management of assets contained in a will from being mismanaged by the executor of a will. Most probate courts will require this if an executor resides in a different state than the deceased who created the will.
  • Guardianship Bond – A guardianship bond is also referred to as “custodian bond”. A probate court will require a guardian of a minor, elderly person, or disabled persons to post a guardianship bond. This bond ensures that the level of care set by the court is followed.
  • Conservatorship Bond – A conservatorship bond protects the assets of an elderly, minor, or disabled persons’ assets. This is similar to a guardianship bond, except the monetary assets are being protected versus the actual care of the individual.
  • Trustee Bonds – Trustee bonds are similar to executor bonds, but the trustee bond guarantees that the interests of the trust are carried out as the guidelines that were established by the beneficiary.

California Marijuana Surety Bonds

As the cannabis industry grows, so will the need for marijuana surety bonds. States and cities have surety bond requirements in place to ensure that companies conduct their business as required by state and local regulations, as well as pay their taxes. California currently has the most marijuana surety bond requirements.

There are three entities within the California state government that regulate the cannabis industry: the Bureau of Cannabis Control (BCC), Manufactured Cannabis Safety Branch, and Cal Cannabis Cultivation Licensing. Each branch monitors different types of cannabis businesses and has its own bonding requirements. Cultivators, retailers, distributors, testing laboratories, microbusinesses, event organizers, and manufacturers in the marijuana industry must obtain a surety bond in order to apply for and maintain a business license. If engaged in more than one sector, multiple bonds must be obtained.

Below is a list of the cannabis or marijuana-related surety bond requirements that currently exist in California:

  • Cannabis Cultivator License Bond (Bond Amount: $5,000) – Cannabis Cultivators are required to have a surety bond in order to apply and maintain a business license to plant, harvest, grow, and prepare cannabis products from plants. The bond form can be found here.
  • Cannabis Retailers License Bond (Bond Amount: $5,000) – Cannabis Retailers are required to have a surety bond in order to apply and maintain a business license to sell cannabis products to consumers either at their storefront or by delivery. The bond form can be found here.
  • Cannabis Distributor License Bond (Bond Amount: $5,000) – Cannabis Distributors are required to have a surety bond in order to apply and maintain a business license to transport cannabis and cannabis goods between manufacturers and cultivators. The bond form can be found here.
  • Cannabis Microbusiness License Bond (Bond Amount: $5,000) – Cannabis Microbusinesses are required to have a surety bond in order to apply and maintain a business license to cultivate, manufacture, distribute, and perform retail sales of cannabis products. The business must perform cultivation in an area less than 10,000 square feet. There are limitations to the manufacturing they can perform. The bond form can be found here.
  • Cannabis Testing Laboratory License Bond (Bond Amount: $5,000) – Cannabis Testing Labs are required to have a surety bond in order to apply and maintain a business license in addition to obtaining an ISO/IEC 17025 accreditation to perform tests of cannabis products. The bond form can be found here.
  • Cannabis Manufacturer License Bond (Bond Amount: $5,000) – Cannabis Manufacturers are required to have a surety bond in order to apply and maintain a business license to produce, prepare, and work with the compounding of cannabis products in order to repackage the product in various forms. The bond form can be found here.
  • $25,000 City of Coalinga Commercial Marijuana Operations Surety Bond (Bond Amount: $25,000) – Cannabis cultivation, processing, extraction, manufacturing, testing, and distribution must obtain a surety bond in order to obtain a conditional use permit and regulatory permit to conduct business within the city of Coalinga. This bond must be purchased in addition to the $5,000 bond required by the state of California. The bond form can be found here.
  • $5,000 City of Los Angeles Commercial Cannabis Surety Bond (Bond Amount: $5,000) – Cannabis related businesses must obtain an additional surety bond if they are conducting business within city limits of Los Angeles in order to guarantee payment of taxes and compliance with city regulations.
  • $5,000 City of Shasta Lake Commercial Cannabis Business Surety Bond (Bond Amount: $5,000) – Cultivators, distributors, manufacturers, retailers, and testing labs must obtain a surety bond with the city in order to obtain a business license. More information can be found here.
  • Yolo County Cannabis Surety Bond (Bond Amount: $10,000) – Manufacturers, cultivators, and distributors in Yolo county must obtain an additional license and permit bond in order to conduct cannabis-related business. More information can be found here.
  • City of Palm Desert Cannabis and Marijuana Tax Bond (Bond Amount: Varies) – Recreational and medical retailers and operations must obtain a surety bond in order to ensure all taxes are paid. Bond requirements are at the discretion of the City Manager. More information can be found here.
  • Shasta County Cannabis Surety Bond (Bond Amount: $5,000) – In order to obtain a license, all cannabis-related businesses will need to purchase an additional Shasta county cannabis license bond. More information can be found here.

13 Unusual Surety Bonds

There are over 11,000 different types of surety bonds, which anyone from a general contractor to the federal government could be required to purchase. Some bonds are well-known and quite common such as a bid bond, motor vehicle dealer bond, or probate bond. However, there are many less unknown bonds and in fact, anyone can create their own surety bond requirement. Here are just a few of the unusual surety bonds available:

  1. Wisconsin Moped Dealer Bond – Required by the Wisconsin Department of Transportation in order to obtain and maintain a license to sell mopeds.
  2. Private Detective Bond – Required by various states in order for private detectives or private detective agencies to obtain a license.
  3. Alabama Dog Bite Bond – On March 8th, 2018 Alabama signed Emily’s Law. Emily’s law requires owners of dangerous dogs to purchase a surety bond of no less than $100,000.
  4. Buying Club Bond – Operators of buying clubs must purchase a type of financial guarantee bond to protect clients of the club from damages resulting from illegal activity.
  5. Car Wash Bond – In various states, owners of car washes or car spa establishments must purchase a surety bond to ensure proper wages are paid to their employees. This bond is required by state labor departments.
  6. Bingo Bonds – Various states require entities operating bingo games to purchase a surety bond to ensure that all taxes, revenues, and payouts are paid.
  7. Boxing Promoter Bonds – Various states require boxing event promoters to purchase a surety bond in order to ensure that participants are paid.
  8. Driving School Bonds – Third-party administrators of driving schools must purchase a surety bond in order to obtain a business license. Driving school bonds are also known as third party administrator bonds and are required in various states.
  9. Cannabis & Marijuana Bonds – While cannabis and marijuana may not be federally legal, numerous states have now legalized both medical and recreational sales and use. Various states and cities require retailers and manufacturers to purchase license bonds and excise tax bonds to ensure business owners pay their taxes and abide by regulations.
  10. Dog Breeder Bonds – The state of Ohio requires dog breeders to purchase a bond to ensure that all regulations and laws are followed. A customer of the breeder may make a claim on the bond if they find the business has violated any laws or made any misrepresentations.
  11. Amusement Enterprise Bond – Amusement parks in Louisiana must obtain a surety bond to ensure they keep their carnival rides safe and abide by all state regulations and laws.
  12. Florida Venomous Reptile Bond – The Florida Fish and Wildlife Conservation Commission requires individuals possessing or entities who exhibit venomous reptiles to purchase a $10,000 surety bond. This bond is required to ensure that venomous reptiles are captured and exhibited properly.
  13. Cemetery Bonds – Owners of property that is used as a cemetery must obtain a bond to ensure the property is maintained and that nothing happens to the graves. These bonds are required in various states and vary in bond amounts.

Surety Bond Renewals

Renewing a surety bond can be a complicated endeavor. Renewal invoices are sent 30 to 90 days prior to the bond’s expiration date. The language of each surety bond contains a cancellation clause that specifically states how much advance notice bonding companies are required to give the principal and obligee prior to the bonds expiration date. Most cancellation clauses require notification to be delivered in writing either 30, 60, or 90 days prior to expiration.

When a bond is renewed, the documentation provided will vary depending on the specific bond. Some bonds are continuous and require no new documentation, only payment.  When a bond has a fixed term end date, typically an entirely new bond is required by the obligee. Others may indicate that a continuation certificate is required at the time of renewal. This can be in the form of a rider amending the term for the next year or a specific continuation certificate. Some bonds do not renew or do not need to be purchased for longer than the initial term.

Knowing when a bond expires can also be tricky. Bonds can have a one-year term or can be issued for multiple years. Some bonds expire one year after they were issued while others expire on specific dates no matter when they were first issued. For example, a car dealer in Georgia obtaining a license for the first time in January of 2020 will need to purchase a bond for a term of January 2020 to 3/31/20. Then in March, the bond must be renewed for a term of 04/01/2020 to 03/31/2022, as all Georgia Motor Vehicle Dealership bonds must expire on 03/31 of even-numbered years.  Below is a list of bonds that have specific expiration dates.

January

01/31 – New Jersey Bugler, Fire and Locksmith Bond

February

02/28 – Illinois Irrigation Contractor Bond

March

03/31 – Georgia Used Motor Vehicle Dealer Bond

03/31 – Michigan City of Burton Watermain Installer Bond

03/31 – Michigan City of Burton Sewer Digger Bond

03/31 – New Jersey Motor Vehicle Dealer Bond

03/31 – New Mexico Motor Vehicle Dealer Bond

03/31 – New Mexico Auto Recycler Bond

03/31 – New Mexico Barber Cosmetology School Bond

03/31 – New Mexico Fruit and Vegetable Packer/Shipper Bond

03/31 – Ohio Professional Solicitor Bond

April

04/30 – Florida MVD Bond

04/30 – Ohio Mortgage Broker Bond

04/30 – Ohio Fundraising Bond

May

05/31 – Texas City of Houston Sidewalk, Driveway, Curb and Gutter Builders Bond

05/31 – Maryland Fuel Dealer Bond

June

06/01 – Florida Talent Agent Bond

06/30 – Michigan Mortgage Broker Bond

06/30 – Mississippi Mortgage Broker Bond

06/30 – West Virginia Motor Vehicle Dealer Bond

06/30 – Michigan Fundraising Bond

06/30 – New Jersey Fundraising Bond

July

07/01 – North Carolina Collection Agency Bond

07/01 – Missouri Combat Sport Promoter Bond

07/01 – Kansas Combat Sport Promoter Bond

07/01 – Colorado Medical Marijuana Bond

August

08/31 – Texas Superheavy/Oversize Permit Bond

September

09/01 – North Dakota Fundraising Bond

09/30 – Alabama Auto Dealer Bond

09/30 – Illinois Plumbing Contractor Bond

09/30 – Alabama Fundraising Bond

09/30 – Texas U.A Plumbers Local Union 68 Wage and Welfare Bond

October

10/31 – Pennsylvania Real Estate Commission Real Estate Education Provider Bond

November

11/30 – D.C. Master Electrician Bond

11/30 – D. C. Electrical Contractor Bond

11/30 – Rhode Island City of East Providence Private Detective Bond

December

12/31 – Alabama City of Auburn Mortgage Broker Bond

12/31 – Alabama City of Auburn Electrician Bond

12/31 – Alabama Nonresident Contractor Bond

12/31 – Alabama City of Cheshire Street Excavation Bond

12/31 – Alabama City of Fairfield Occupational License or Permit Bond

12/31 – Alabama City of Hamden Occupational License or Permit Bond

12/31 – Colorado Denver Merchant Guard Company Surety Bond

12/31 – Connecticut City of Hartford Occupational License or Permit Bond

12/31 – Connecticut city of Milford Occupational License or Permit Bond

12/31 – Connecticut City of Newington Drain Layer Bond

12/31 – Connecticut City of Norwalk Drain Layer Bond

12/31 – Connecticut City of Wallingford Excavation Contractor

12/31 – Connecticut City of West Hartford Curb and Walk Layer Bond

12/31 – Connecticut City of West Hartford Drain Layer Bond

12/31 – Connecticut City of Wethersfield Street Excavation Bond

12/31 – Connecticut City of Wethersfield Drain Layer Bond

12/31 – Connecticut City of Wethersfield Curb and Walk Layer Bond

12/31 – Connecticut Motor Vehicle Dealer Bond

12/31 – Connecticut Used Car Lot Bond

12/31 – D.C. Mortgage, Transmitter, Finance, Lender or Check Casher Surety Bond

12/31 – Florida Franchised Motor Vehicle Dealer Bond

12/31 – Georgia Liquor Manufacturer Distillery Tax Bond

12/31 – Illinois Designated Agent Bond

12/31 – Illinois Payday Loan Reform Bond

12/31 – Illinois Remittance Agent Surety Bond

12/31 – Illinois Residential Mortgage License Surety Bond

12/31 – Indiana Mortgage Broker Bond

12/31 – Louisiana Auctioneer Bond

12/31 – Louisiana Motor Vehicle Dealer Bond

12/31 – Massachusetts Liquor License Surety Bond

12/31 – Massachusetts Professional Solicitor and Commercial Co-Venturer Surety Bond

12/31 – Michigan Mortgage Loan Originator Bond

12/31 – Michigan Secondary Mortgage Bond

12/31 – Missouri Auto Dealer Bond

12/31 – Montana Auto Dealer Bond

12/31 – Nebraska collection Agency License Bond

12/31 – Nebraska Motor Vehicle, Trailer, Wholesale or Motorcycle Dealer Bond

12/31 – Ohio County of Hamilton Installation/Repair Plumbing Performance Bond

12/31 – Ohio City of Lima Electrical Contractor Bond

12/31 – Ohio City of Lyndhurst HVAC Bond

12/31 – Ohio City of Maple Heights Occupational License or Permit Bond

12/31 – Ohio City of Mentor Certificate of Registration

12/31 – Ohio City of Mentor Electrical

12/31 – Ohio County Montgomery HVAC

12/31 – Ohio Village of Moreland Hills Occupational License or Permit Bond

12/31 – Ohio City of North Ridgeville Contractor Bond

12/31 – Ohio City of North Royalton Contractor Performance Bond

12/31 – Ohio City of Oakwood City Cement License Bond

12/31 – Ohio Township of Olmsted Contractors Registration Bond

12/31 – Ohio City of Oregon  Sidewalk and Driveway Contractor Bond

12/31 – Ohio City of Parma Contractor Bond

12/31 – Ohio City of Pepper Pike Occupational License or Permit Bond

12/31 – Ohio City of Perrysburg Sidewalk Contractor Bond

12/31 – Ohio County of Pickaway Contractor / Sub-contractor Registration Bond

12/31 – Ohio County of Portage Contractor Bond

12/31 – Ohio City of Reminderville Contractor Bond

12/31 – Ohio City of Reynoldsburg Contractor’s Registration Bond

12/31 – Ohio City of Seven Hills General Contractors Bond

12/31 – Ohio City of Shaker Heights Occupational License or Permit Bond

12/31 – Ohio City of Solon Contractor Registration Bond

12/31 – Ohio City of South Euclid Contractor Registration Bond

12/31 – Ohio City of Springfield Home Improvement Bond

12/31 – Ohio City of Toledo Plumbers Indemnity Bond

12/31 – Ohio County of Trumbull Electrical Contractor Bond

12/31 – Ohio County of Trumbull Mechanical Contractor Bond

12/31 – Ohio City of Twinsburg Contractor Registration Bond

12/31 – Ohio City of University Heights Contractor’s License Bond

12/31 – Ohio County of Warren Plumbing Contractors Bond

12/31 – Ohio City of Warrensville Heights Occupational License or Permit Bond

12/31 – Ohio City of Westlake Occupational License or Permit Bond

12/31 – Ohio City of Wickliffe Contractor Registration Bond

12/31 – Ohio City of Willoughby – City HVAC/Refrigeration Bond

12/31 – Ohio City of Willoughby Hills – City Occupational License or Permit Bond

12/31 – Ohio City of Willowick Contractor Registration Bond

12/31 – Ohio County of Wood (Northwestern Water & Sewer District) Sewer Tapper Bond

12/31 – Oklahoma Auto Dealer Bond

12/31 – Rhode Island Motor Vehicle Dealer Bond

12/31 – Rhode Island City of Providence Side Walk Bond

12/31 – Tennessee Dealer of Manufactured Home Bond

12/31 – Texas Fuel Tax Bond

12/31 – Texas Continuous Bond of Seller Sales Tax Bond

12/31 – Texas Bingo Gross Receipts Bond

12/31 – Texas Mortgage Broker, Lender or Servicer Bond

12/31 – Texas City of San Antonio Master Electrician Bond

12/31 – Texas Mixed Beverage Receipts Tax Bond

12/31 – Texas Residential Mortgage Loan Services Bond

12/31 – Texas License to Conduct Bingo Bond

12/31 – Texas City of Kerrville Contractor License Bond

12/31 – Texas City of Kirby Home Improvement Contractor/Salesman Bond

12/31 – Texas City of Antonio Sidewalks, Curbs, Cutter and Driveway Bond

12/31 – Texas City of Antonio Home Improvement Bond

12/31 – Texas City of Dallas Paving Bond

12/31 – Virginia County of Fairfax Home Improvement Contractor Bond

12/31 – West Virginia Motor Vehicle License Service Bond

The Top Three Surety Bonds in Ohio

Ohio’s top three surety bonds are Contractor License Bonds, Motor Vehicle Dealer Bonds, and Lottery Sales Bonds. This week we’ll cover each of the three bonds, discussing who is required to obtain them, the bond amount, and more.

Ohio Contractor License Bonds

Most states have a contractor license bond requirement, but not Ohio. In Ohio, each county, city, and municipality have their own bond requirement. Instead of having one bond required by the state, a contractor in Ohio may have dozens, for each city work is performed in. Ohio contractor license bonds vary in bond amount and term, but most are one- or two-year bonds with a bond amount between $10,000 and $25,000.

Ohio Motor Vehicle Dealer Bonds

Ohio motor vehicle dealer bonds are required for all motor vehicle dealerships. A used motor vehicle dealer, as required in section 4501:1-3-11 of the Ohio Administrative Code (OAC), shall post with the Attorney General’s Office in favor of this state, a surety bond in the amount of twenty-five thousand dollars ($25,000). Auto dealers entering into the business or existing businesses must file and keep a surety bond with the Ohio Bureau of Motor Vehicles before they can receive their auto dealer license. The surety bond is used solely for the purpose of replenishing funds that have been distributed from the Title Defect Rescission (TDR) fund to compensate retail purchasers of the said dealership. No license will be issued if a surety bond has not been secured meeting the requirements below. Proof that a surety bond has been secured must be submitted with the application.

The bond form can be found on the Ohio Bureau of Motor Vehicles website.

Ohio Lottery Sales Bonds

The Ohio Lottery Commission requires that most lottery sales retailers furnish a $15,000 surety bond to guarantee compliance with the rules and regulations established by the Commission. The surety bond is for those who wish to become a licensed lottery retailer and is conditioned upon the retailer’s compliance with all laws, rules, policies, and regulations governing the license. Businesses that may be a retailer are gas stations, grocery stores, or any place where lottery tickets are sold in Ohio.

Most retailers are required to carry a $15,000 bond but may be required to carry a higher bond based on lottery sales. A surety bond typically costs $10 to $15 per thousand dollars of coverage. The lottery issues tickets on consignment. The bond protects the lottery against any monies due from the retail locations. Additional information regarding the lottery retailer application process can be found on the Ohio Lottery website.

The Three Parties of Surety Bonds

Working with surety bonds involves using unique terminology. Despite surety being lumped into the insurance sector, even insurance agents need a translator to navigate through the bonding process. The three parties to a surety bond are the Obligee, Principal, and Surety.

Obligee

This is the entity that is requiring the principal to be bonded. Often times this is a government entity, such a Department of Motor Vehicles for commercial bonds or a general contractor for contract bonds.

Example: A cosmetology school must be bonded. Halfway through the semester the cosmetology school goes bankrupt and must close. The bond protects the students and their pre-paid tuition. Students can make a claim on the bond to be reimbursed. The surety will pay the claim and then look to the individuals who own the business to be made whole on the full amount of the bond claim.

Principal

The person or business required to be bonded by the obligee. The Principal must purchase a bond from a licensed insurance agent or surety bond broker and abide by the obligations stated on the bond form. The Principal is in a position where their decisions may cause harm to consumers of their business or to entities required to maintain oversight and regulation – such as a state or local government. Therefore they are required to be bonded.

Example: Cosmetology schools, car dealers, contractors, mortgage brokers, freight brokers, health studios and even an executor of a will are examples of bond principals.

Surety

The Surety is an entity providing a line of credit guaranteeing the compliance or performance of a specific obligation, contract, or law. The surety underwrites the principal during the application process to ensure zero losses. Unlike insurance, surety bonds are written with the expectation of zero losses. Also unlike insurance, if a claim is made the surety will pay the claim if proven valid. The surety will then look to the principal to reimburse the surety for the full claim amount. This is why indemnities require a signature from the business and a signature from the business owners.

ERISA Bonds

Employee Retirement Income Security Act (ERISA) bonds are required for sponsors or employers who manage employee retirement accounts such as 401(k), 403(b), or pension plans. An ERISA bond is a type of fidelity bond that protects benefit plan participants from loss due to fraud or dishonesty, such as embezzlement or fraud. According to ERISA, a company must have a bond amounting to no less than 10 percent of the value of the plan, up to a maximum bond amount of $500,000. Every individual, sponsor, or “fiduciary” who handles the retirement plan, must be bonded.

ERISA Bond Rates for 3-Year Term:

Policy Limit Premium (3-Year Term)
$10,000 $100
$50,000 $162
$150,000 $263
$200,000 $290
$300,000 $344
$400,000 $398
$500,000 $450

Crime Policies and the Bonds They Cover

Crime insurance policies are often referred to as fidelity insurance, employee dishonesty bonds, or business service bonds. Crime coverage is a relatively new insurance policy that satisfies requirements the following bonds:

Fidelity Insurance

Companies often purchase fidelity insurance in addition to an ERISA bond. This coverage is optional and protects the assets of the company’s retirement plan against an employee’s actions that inadvertently cause harm to the plan’s assets. An employee acting in good faith may misinterpret regulations overseeing the retirement plan, which may result in penalties or fees being assessed to the plan. Acts in good faith and are not acts of dishonesty or fraud, they are not covered under an ERISA bond.

Employee Dishonesty Bond

While an ERISA bond is a type of fidelity bond, there are other types of fidelity bonds that are unrelated to retirement accounts, such as an employee dishonesty bond. Employee Dishonesty bonds protect your company against this type of employee theft. Examples of employee theft are embezzling money, forging checks, stealing cash, cyber fraud, and theft of merchandise or company equipment.

Business Service Bond

Business services bonds are purchased by business owners with employees who primarily work at the location of their clients. Examples of businesses that may need a business service bond are janitorial services, maids or cleaning services, gardeners, exterminators, pool cleaners, security services, carpet cleaners, painters, locksmiths, movers, pet-sitters, plumbers, and appliance repair technicians. Business service bonds protect their clients from any theft resulting from a malicious act of their employees, such as stealing and theft.