License bonds are a type of surety bond.

This type of bond requires that in the event of a paid claim, the purchaser of the bond repay the bonding company. Because of this, when applying for a license bond, the company will want to check the applicants financial status. This is not much more that a simple credit check on some types of license bonds. On more hazardous types of bonds, detailed financial statements will be needed. Talk to your insurance agent to determine what type of bond you will need.