★ Commercial · Surety bonds
A bond isn't insurance. It's a promise, backed by money.
A surety bond guarantees to someone else (the obligee) that you will do what you promised: finish the job, pay your subs, follow the license rules. If you don't, the surety pays them and comes to you for reimbursement. That last part is what everyone needs to understand first: unlike insurance, a bond expects to be paid back.
Free quotes · No obligation · A licensed specialist answers, usually within one business day
★ What it covers
What a bond guarantees, and what it doesn’t.
Plain English, no fine-print games. Every policy has exclusions; here are the ones that actually matter for Surety Bonds.
What it covers
- License & permit bondsGuarantee you will follow the rules of your license. Required by many cities and states before contractors can pull permits.
- Bid bondsGuarantee you will take the job at your bid price if you are awarded it. Standard on public work.
- Performance bondsGuarantee you will complete the contracted work. The bond GCs and public owners require.
- Payment bondsGuarantee your subcontractors and suppliers get paid, even if you don't pay them.
- Fidelity bondsProtect your clients (or you) against employee theft. The closest thing to 'insurance' in the bond world.
What it doesn’t cover
- Your own lossesA bond protects the obligee, not you. Your losses need actual insurance.
- Workmanship quality itselfThe bond guarantees completion and payment, not that the work is good. Quality disputes are a contract matter.
- Anything without indemnityYou will sign a general indemnity agreement: the surety can recover paid claims from you personally.
- Unqualified principalsPoor credit or thin financials mean decline or heavy collateral. There is no 'high-risk pool' for bonds.
- Insurance perilsFire, theft, and liability need real policies. A bond covers none of that.
All quotes are subject to carrier underwriting and final approval. Coverage availability, terms, and pricing vary by state and carrier. The lists above describe typical Surety Bonds policies, not any specific carrier’s form.
★ Who needs it
The trades that can’t bid without one.
The businesses that buy Surety Bonds most, and the one-line reason each one does.
Contractors bidding public work
Most public jobs require bid, performance, and payment bonds by law.
GCs requiring bonded subs
Your contract may push bonding requirements down to your subcontractors.
Licensed trades
Many municipalities require license/permit bonds before you can pull a permit.
Businesses handling client funds
Fidelity bonds reassure clients who hand you money or access.
Anyone whose contract says 'bonded'
If the RFP says it, you need it before you bid, not after you win.
★ What it costs
What moves the premium.
Carriers price Surety Bonds on exposure, not vibes. Here’s what moves your number, and what you can actually influence.
- Bond amount and contract size: Premium is a percentage of the bond's penal sum. Bigger jobs, bigger premium.
- Personal credit: Sureties underwrite you like a lender. Credit score matters enormously for small contractors.
- Financial statements: Larger bonds need reviewed financials and work-in-progress schedules.
- Experience and track record: Completed similar jobs on time is the best bonding credential there is.
- Collateral: Weak financials can still get bonded, with cash or letters of credit held as collateral.
Bidding a job that says ‘bonded’?You need the bond before you bid, not after you win. Bid, performance, payment, and license bonds. One specialist handles all of them.
★ Often quoted together
Quoted with the bond.
Most businesses don’t buy one policy in isolation. These are the lines a bond buyers usually quote at the same time. One specialist quotes the whole package.
General Liability
The foundation policy: third-party injuries, property damage, and legal defense.
Workers' Comp
Medical bills and lost wages for work injuries. Required in nearly every state once you hire.
Commercial Umbrella
Extra millions stacked over your GL, auto, and employers liability, for the catastrophic claim.
★ Straight answers
Questions bond buyers actually ask.
The short version of what our licensed specialists explain on calls every week.
Is a surety bond the same as insurance?
Why does the surety check my personal credit?
What does a bond cost?
What happens if there is a claim on my bond?
Can I get bonded with bad credit?
Do I need bonds and insurance?
Get my quote
Get your Surety Bonds quote. Two minutes.
Tell us about the business. A licensed specialist shops the carriers and comes back with real options.
- About 2 minutes, built for Surety Bonds
- A licensed specialist follows up, usually within one business day
- No bait prices, no call centers, no selling your information
Free quotes. No obligation. Written through Patriot Independent Insurance Partners, licensed in TX, FL, GA, SC, AL, MS, NC, CA, and CO. Your information is never sold to lead brokers.