Surety Bond Types

Cost data, requirements, and plain-English explanations for every common bond type.

License & Permit Bond

Required by government agencies to obtain a business license or permit. Guarantees compliance with regulations.

Bond Range
$5,000 - $50,000
Typical Cost
$100 - $500/yr

Contractor Bond

Required in most states for general contractors and specialty trades. Protects project owners from contractor non-performance.

Bond Range
$5,000 - $25,000
Typical Cost
$100 - $300/yr

Mortgage Broker Bond

Required by state and federal regulators (NMLS) for mortgage lenders, brokers, and servicers.

Bond Range
$25,000 - $500,000
Typical Cost
$500 - $5,000/yr

Money Transmitter Bond

Required in most states for businesses that transfer money on behalf of others. Bond amounts are among the highest of any license type.

Bond Range
$50,000 - $2,000,000
Typical Cost
$5,000 - $50,000/yr

Auto Dealer Bond

Required in all 50 states for motor vehicle dealers. Protects consumers against dealer fraud or misrepresentation.

Bond Range
$10,000 - $100,000
Typical Cost
$100 - $500/yr

Collection Agency Bond

Required in most states for debt collectors and collection agencies. Guarantees ethical collection practices.

Bond Range
$5,000 - $100,000
Typical Cost
$200 - $2,000/yr

Freight Broker Bond (BMC-84)

Required by the FMCSA for all licensed freight brokers. Fixed at $75,000 bond amount.

Bond Range
$75,000
Typical Cost
$900 - $3,000/yr

Court / Judicial Bond

Required by courts in legal proceedings. Includes appeal bonds, attachment bonds, and injunction bonds.

Bond Range
$5,000 - $10,000,000+
Typical Cost
Varies widely

Fidelity Bond

Protects businesses against employee theft, fraud, or dishonesty. Often required by clients or contracts.

Bond Range
$10,000 - $1,000,000
Typical Cost
$100 - $500/yr

Performance Bond

Guarantees completion of a construction project. Required on government projects and many large private projects.

Bond Range
$50,000 - $50,000,000+
Typical Cost
1-3% of project value

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