Know What Your Bond Costs
Before You Buy.

A surety bond is a three-party agreement: the principal (you), the obligee (the entity requiring the bond, usually a government agency), and the surety (the insurance company backing the bond). It guarantees that you'll fulfill your obligations — following regulations, completing a project, or acting honestly. If you don't, the surety pays the claim and then comes to you for reimbursement.

You pay an annual premium, typically 1-15% of the bond amount. Your rate depends primarily on your credit score, the bond type, and the bond amount. Someone with excellent credit (720+) on a $10,000 bond might pay $100-$250/year. Use our cost calculator for a quick estimate.

No. Insurance protects you from losses. A surety bond protects others (typically consumers or the government) from your non-compliance. If a claim is paid on your bond, the surety will seek reimbursement from you. With insurance, the insurer absorbs the loss.

Simple bonds (license & permit, contractor) can be issued within 1-3 days. Complex bonds (money transmitter, large performance bonds) may take 1-4 weeks due to underwriting requirements. A bond specialist can tell you exactly how long your specific bond will take.

Yes, significantly. Credit is the single biggest factor in your premium rate. Excellent credit (720+) typically gets rates of 1-3%. Fair credit (600-679) may see rates of 4-8%. Below 600, rates can reach 10-15%, and some bond types may require collateral.

Bond procurement is typically handled by surety bond agencies or licensing firms. We recommend Cornerstone Licensing, which handles bond procurement as part of their licensing services. They've processed 525,000+ filings over 28 years and can secure your bond alongside your license application.