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What Does A Surety Bond Cost?

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What Does A Bond Cost?

Surety bond costs vary greatly by bond category, the applicant and bond amount. You can get a quick estimate, or continue reading for more details.

License/permit and miscellaneous bond costs are a percentage of the bond amount based on the risk taken on by the surety company. The surety risk is based on:

  • Applicant's financial strength
  • Nature of what the bond guarantees (type of work)
  • Bond form language

You can apply directly on our website and get an instant approval.

Bids bonds are a flat nominal fee charged on an annual basis, or provided free of charge to larger clients. It is important to understand that there is no one size fits all rate. There are many factors that affect price ranges.

Performance, payment, and supply bond costs are based on a percentage of the total contract amount, which varies by:

  • The applicant's financial strength
  • Type and scope of work

The obligee will pay for the final bond, as long as the contractor includes it in the bid pricing. Check out our video to learn more about the cost of bid and performance bonds. Subdivision bond pricing is calculated by a percentage of the bond amount. Maintenance bonds are typically free, unless the bond is for 2 plus years. Use our tool to get a ball park estimate or apply online to get an accurate price.

Most obligee's and property owners have standards that the surety company must meet, such as having a specific AM Best Rating/category size and being listed in the Circular 570 Treasury Listing. If a bond is obtained using a surety who does not meet standards, the bond is worthless, the job will be lost and there will be no reimbursement.

Service contracts bonds are underwritten much differently than construction contract bonds. Sureties are less stringent when reviewing financial statements for a service contract bond, since service contracts are not as cash flow dependent as a construction project. However, the surety likes to see a trend of profitability with both construction and service contracts during underwriting.

Appeal, probate and guardianship surety bond rates are based on a percentage of the bond amount. Appeal bond rates are low in comparison to the other types, but require 100% collateral in most cases, which can be avoided for very strong applicants (e.g. Fortune 500 Companies).

Probate bonds sometimes have a sliding scale for cost, and must renew each year until the estate assets are completely disbursed. Likewise, guardianship bonds can also have a sliding scale, and must renew each year until the fiduciary's responsibilities cease. Apply for a court bond directly on our website to get an exact price.


Woman: I need a surety bond, but I have no idea how much they cost.

JW: Surety bond costs vary greatly based on the size of the bond, the type of bond, and the applicant.

Woman: That makes sense, but can you just give me an idea of costs?

JW: I can give you a rough idea, but to determine your actual costs, you'll need to apply online, as bonds are not a one size fits all product. What do you need the bond for?

Woman: I actually need two. One is required to obtain my contractor's license and I need the other for a specific public job I want to do.

JW: Ok...License bonds are usually pretty small and based strictly on your personal credit. The better your credit, the lower the rate. Your best bet is to use our free estimate tool to see a range of costs. It will calculate the ranges you're looking for on your specific bond type and amount.

Woman: Sounds good, but what about the bond I need for the public works contract?

JW: You can use our estimate tool for that, but I'd also recommend you check out our video "What do bid and performance bonds cost?". There is quite a bit more to them than a simple estimate tool can provide and I think you'll find the video very informative.

Woman: Great thanks! I'll check it out right now.