Getting A California Surety Bond May Cost More Than You Think

Find out why certain surety bonds are more expensive in California, and if your line of work is one of the pricier professions to purchase a bond for.

Surety Bonds in California Can Be Expensive

Higher surety bond costs in certain states are caused by larger than average numbers of bond claim losses. California is a prime example of one of these states. High bond claim losses means there are a high number of bond claims due to business owners not following state regulations when conducting business. The larger the number of claims in California, the higher surety companies bond rates rise. While there's no clear cut reason as to why, certain lines of business have a higher number of claims, often leading to higher losses and rates. The contractor, agricultural dealer, and auto dealer industries have a particularly high number of claims, leading to large losses and sometimes higher bond rates.

What Do Surety Bonds Cost?

Keep in mind, when a surety company writes a bond for you, they are actually providing a form of credit by guaranteeing you will pay any bond claims that you cause. Bond claims come about when a business owner operates unethically or unprofessionally. If laws are broken and a customer files a claim, the surety company will pay it initially. However, the principal is ultimately responsible to pay the surety back. The losses accumulate when business owners don't pay their claims, forcing surety companies to pursue them legally, costing thousands to do so.

Lower Bond Costs Are Possible

If you are financially strong (strong personal credit, business financials and experience) you likely won't have to worry about the higher California bond rates. Aside from the industries mentioned above, surety bond costs are relatively low for the majority of professions when comparing bond pricing to other states. Read our article to find out why California surety bond costs are lower compared to the rest of the country.


Eric is an industry expert that specializes in taking complex surety concepts and explaining them in terms that make sense to the general public. He also manages the JW Surety Bonds website and works with various partners to help further educate the public on suretyship using various mediums.

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