What is a surety bond?
A three-party agreement that guarantees you will meet an obligation, such as a license requirement or a contract. If you do not, the surety pays the claim and you repay the surety. It is a guarantee of your performance, not insurance for you.
Is a surety bond the same as insurance?
No. Insurance protects you against your own losses. A surety bond protects a third party, like a state, a customer, or a project owner, and guarantees your performance. If a claim is paid, you reimburse the surety.
How do I know which bond I need?
It depends on your state, your industry, your license type, and any contract requirements. The most common mistake is buying the wrong bond, so it is worth confirming the exact requirement before purchasing. If you are unsure, talk to a specialist.
How much does a surety bond cost?
Usually a small percentage of the bond amount, not the full amount. A $10,000 bond often costs a few hundred dollars a year. Your premium depends on the bond type, your credit, and underwriting.
Can I purchase a bond online?
Yes. Many common bonds can be searched, quoted, purchased, and issued electronically through our online bond portal, often in minutes.
How quickly can a bond be issued?
Many standard bonds are issued quickly, often the same day, through the portal. More complex bonds may take a little longer.
What if I have bad credit?
Many bonds are still available with less-than-perfect credit, sometimes at an adjusted rate. Pricing considers credit, but a specialist can find markets that work with a range of credit profiles.
What if my bond application is declined?
A decline is not the end. Different sureties have different appetites, and a specialist can often place a bond that one market declined. Reach out and we will help.
What happens when my bond renews?
Most bonds renew on a set term. You will typically receive a renewal notice and pay the renewal premium to keep the bond active. We can help you track renewals so nothing lapses.
Are bond requirements different in every state?
Yes. Bond types, amounts, and forms vary by state and licensing authority, which is exactly why confirming the requirement before buying matters.
