Business owners need many different types of insurance to protect their facilities, employees, and financial investments. Some industries require additional protection because their products carry either physical or financial risk. Carrying a commercial bond helps business owners show potential customers that they're meeting all the legal requirements and regulations and can verify their products' safety and security. Below are a few of the industries that require this unique insurance coverage.

What Are Common Types of Commercial Bonds?

1. Automotive Dealer 

The auto industry isn’t just subject to its own type of insurance, as it also has its own bonds. These bonds are used to ensure buyers that auto dealers will comply with all applicable laws. This can include being honest with buyers about the condition of vehicles and abiding by any warranties. Bonds can also be used for dealers of off-road vehicles like ATVs and snowmobiles. 

2. Liquor

Liquor is a popular good, but it also has a history that shows improper practices that can harm consumers. Liquor bonds ensure those who manufacture, store, and sell these products comply with all applicable requirements for testing and distribution. This lets consumers know the dealer is safe to work with and consume beverages from.

3. Lottery

Even the lottery, a game based entirely off of chance, is subject to bonds. Lottery machines must be maintained according to strict guidelines, which can vary from state to state. Lottery bonds ensure the public that any organization using lottery machines maintains them in a way deemed fair by the area’s applicable laws.

4. Title 

Titles are often mentioned alongside topics like insurance and liability because they can cause a legal mess if not handled properly. Title bonds are issued to ensure that organizations that issue titles for vehicles and other property do it in accordance with laws so that the person who receives the title has no legal trouble later.

5. Wage & Welfare 

Groups like unions that engage in collective bargaining usually have bonds issued to ensure they will deliver all parties any wages or fees that they are owed for any labor disputes or cases settled involving the organization. 

If you need an expert experienced with a variety of insurance policies and bonds, turn to Integrity Insurance Solutions in San Marcos, TX. Whether you need help picking an insurance policy for personal or professional purposes, this organization has a decade of experience providing proven results. To get in touch, visit them online or call (512) 396-2211 to speak to a representative.