Specialty Lines
Surety Bonds — The Guarantee Your Contracts Require
We have deep relationships with surety carriers and experience across contract, commercial, and court bonds — bid bonds, performance bonds, payment bonds, license bonds, and more.
What is a surety bond — and how is it different from insurance?
A surety bond is a three-party agreement that guarantees an obligation will be fulfilled. Unlike insurance (which protects the policyholder), a surety bond protects the party requiring the bond — your client, the government, or a court. If you fail to perform, the surety pays — and then recovers from you.
The Principal
You — the business or individual required to obtain the bond. You are responsible for fulfilling the obligation and repaying the surety if a claim is paid.
The Obligee
The party requiring the bond — a government agency, project owner, court, or licensing body. They are protected if you fail to perform.
The Surety
The insurance company that issues the bond and guarantees your performance. They pay claims and seek reimbursement from you.
How Claims Work
If you default on your obligation, the obligee files a claim with the surety. The surety investigates and, if valid, pays the claim — then pursues the principal for reimbursement. This is why surety bonds involve underwriting of your financials.
Surety expertise across bond types and industries
We issue bonds across contract surety, license and permit bonds, court bonds, and commercial bonds — with relationships across multiple surety carriers for both standard and harder-to-place risks.
Who needs a surety bond?
- General and specialty contractors
- Any business requiring a state license or permit bond
- Companies bidding on government contracts
- Mortgage brokers, auto dealers, freight brokers
- Notaries, process servers, and court-related roles
- Businesses handling client funds or property
- Administrators of estates and guardianships
Types of Surety Bonds We Write
Surety bonds cover an enormous range of obligations. Here are the most common categories we handle.
Bid Bonds
Guarantee that if you win a contract bid, you will enter into the contract and provide the required performance and payment bonds. Required on most public construction bids.
- →Submitted with bid package
- →Protects the project owner
- →Typically 5—10% of bid amount
- →No cost to bidder in most cases
Performance Bonds
Guarantee that you will complete a contract according to its terms and specifications. If you default, the surety steps in to complete the project or compensate the owner.
- →Required alongside bid bonds
- →Covers contract completion
- →Most common on public works
- →Private projects increasingly required
Payment Bonds
Guarantee that subcontractors, suppliers, and laborers on a project will be paid. Often required alongside performance bonds on public construction.
- →Protects subs and suppliers
- →Required on federal projects over $150K
- →Miller Act / Little Miller Act compliance
- →Accompanies performance bond
License & Permit Bonds
Required by state and local governments for many licensed professions and businesses. Guarantees compliance with laws and regulations governing your industry.
- →Auto dealers and brokers
- →Contractors and trades
- →Mortgage and finance professionals
- →Freight brokers, collection agencies
Court & Judicial Bonds
Required by courts in various legal proceedings — including appeal bonds, probate bonds, guardian bonds, and administrator bonds.
- →Appeal and supersedeas bonds
- →Executor and administrator bonds
- →Guardian and conservator bonds
- →Attachment and injunction bonds
Fidelity / Employee Dishonesty
Protects against employee theft, fraud, and dishonesty. Often required for businesses handling client funds, financial institutions, and government contractors.
- →First-party crime coverage
- →Required for ERISA plans (with D&O)
- →Blanket vs. scheduled bond options
- →Can be standalone or part of package
Common Questions
-
No — a surety bond is a three-party guarantee, not a two-party insurance policy. Insurance protects the policyholder. A surety bond protects the party requiring it. Critically, if the surety pays a claim on your bond, they expect to recover that amount from you. There is no "loss" absorbed the way insurance works.
-
Surety bond premiums are based on the bond amount and your creditworthiness — not just your business type. Your personal and business credit history, financial statements, and years in business all factor into the rate. Good credit typically means 1—3% of the bond amount; higher-risk applicants pay more or may need collateral.
-
Yes, in many cases. Some surety carriers specialize in higher-risk or credit-challenged applicants, though premiums will be higher and collateral may be required. We work with multiple surety carriers to find the best option for your situation.
-
Many license and permit bonds — especially for lower amounts — can be issued same-day or next-day online. Larger contract bonds (performance and payment) require more underwriting and may take a few days to a week. We'll give you a realistic timeline when you apply.
-
Most surety bonds are annual and must be renewed. Contract bonds are typically project-specific and remain in force until the contract obligations are fulfilled. We'll track your renewals and reach out proactively before expiration.