Punitive Surety Bond

A Punitive Surety Bond is a general term used to describe bonds in the surety industry. Punitive surety bonds are bonds that are intended to correct a deficiency of certain classes of individuals or businesses that are required to have a license in a certain jurisdiction. For example some contractor’s license boards require that contractors who have had a disciplinary action against them post an extra disciplinary bond in addition to their regular contractor license bond. Or, in other instances, some states require that only companies who do not meet certain financial requirements post a bond to obtain a license.