OUR Commercial Surety Appetite

Large Bonds

At Merchants Bonding Company, we specialize in large commercial surety bonds, with a capacity of $10 million single and $40 million aggregate.

Advancements in Technology

We have invested in technology, specifically in the automation of small transactional bonds, which creates the additional bandwidth needed for our commercial team to take on the more complex underwriting associated with larger commercial surety bonds.


Merchants' surplus has been steadily growing, hitting $254.9 million with 6 percent growth in 2022.  Our increased surplus provides us the resources to responsibly support our multi-million dollar appetite for commercial surety bonds.

Account-Driven Business

Closely related to our large bond strategy is our focus on commercial accounts. Merchants has aligned ourselves with the way many of our agencies think about surety. An account-driven strategy allows us to provide resources for principals needing multiple bonds, aggregating services for them. 

Bond Types

We offer a wide range of commercial surety bond types, including: 

  • License and Permit Bonds - License and Permit (L&P) bonds are the most common type of commercial surety bonds. L&P bond requirements are derived from statutes, codes, and ordinances, which are enacted by regulatory bodies at various levels. Governmental authorities require a licensee or permitee to post a bond as a condition of the business licensing or permit process.
  • Notary Bonds - A notary bond is required by many states to ensure that notaries perform their notarial duties in accordance with the law. The bond amount is determined by each state and can range from $500 to $25,000.
  • Fiduciary/Probate Bonds - Probate bonds are required by the court when one person is handling the affairs of another person. They are a fiduciary guarantee, obligating one person to act on behalf of and in the best interest of another. A bond is required at the discretion of the court and varies from state to state.
  • Court Bonds - Many court cases require court bonds for plaintiffs or defendants. They protect the other party involved in the case to prevent financial losses, especially if action is needed prior to the final judgment.
  • Public Official Bonds - Public official bonds are needed by various elected or appointed officials to guarantee that the public official will faithfully perform their job duties. Breaches of those duties could include fraud, dishonesty or neglect.
  • Non-Construction Performance Bonds - Non-Construction Performance (NCP) surety bonds guarantee “non-sticks-and-bricks contracts." This includes any contract that does not relate to a building or construction job. NCP bonds include: Service contracts; Supply contracts; Supply & Install and/or Fabricate & Supply.
  • Theft Guard Fidelity Bonds - Theft Guard fidelity bonds protect businesses and business owners from losses
    associated with employee dishonesty. Theft Guard fidelity bonds are specifically designed to mitigate the risk of employee theft.
  • ERISA Bonds - ERISA bonds provide protection for these private industry retirement or health plans. The bond protects the employee benefit plan from fraud or dishonesty committed by those who handle the plan funds. Retirement plans, health plans or welfare benefit plans may need ERISA bonds.
  • Insurance Program Bonds - Private insurance plans for businesses may require collateral to secure the policy.  A Merchants Bonding Company insurance program bond is a cost-effective solution to meet this collateral requirement.
  • Miscellaneous Bonds - Miscellaneous bonds include any bonds that do not fall under the other main bond families. Examples include patient trust fund bonds, utility deposit bonds, lost securities bonds, union wage and welfare bonds, and more.

Fulfilling Our Vision

Merchants' approach to large bond and account-driven business aligns with our evolved vision for the company “To become twice the enterprise through innovation and responsible growth.” We look forward to growing with you.

Ready to Get Started?

Contact us at info@merchantsbonding.com to get appointed today and start issuing surety bonds with Merchants Bonding Company!




Surety bonds are issued by Merchants Bonding Company (Mutual) through insurance agents. Contact your local insurance agent or use our Find an Agent tool. They will guide you through the process, informing you of what documents and information are needed by the surety (Merchants Bonding Company (Mutual)) to underwrite your bond.


A surety bond is a three-party agreement that ensures the fulfillment of a commitment or contract. For instance, the surety (Merchants Bonding Company (Mutual)) may provide a surety bond to a construction company (the principal) which is required by the state (the obligee), ensuring the construction company will perform the duties as outlined in the contract. In bonding the construction company, Merchants assumes the risk should the company default or not fulfill their contract. A surety bond is different from traditional insurance in that the principal is obligated to pay back the surety company on any claims paid out.

All information provided is subject to change.