What Does That Look Like?
Bond Amount
Premium Range
Typical (Strong Credit)
$10,000
$100 – $1,000
$100 – $300
$25,000
$250 – $2,500
$250 – $750
$50,000
$500 – $5,000
$500 – $1,500
$100,000
$1,000 – $10,000
$1,000 – $3,000
You are not paying the full bond amount — only the premium.
What Determines Your Bond Cost?
Surety companies price bonds based on risk. Key factors include:
- Credit score (most important)
- Bond type (license, contract, court, etc.)
- Bond amount
- Financial strength
- Business experience
Applicants with strong credit and financials typically qualify for the lowest rates.
Cost by Credit Profile
Credit Profile
Score
Typical Premium
Excellent credit
700+
~1% – 3%
Average credit
650 – 699
~3% – 7%
Challenged credit
Below 650
~7% – 15%
Higher risk = higher premium. But approval is still very possible — even with challenged credit.
Do You Pay This Annually?
- License & permit bonds — usually annual payments
- Contract bonds — typically one-time cost per project
- Court bonds — varies depending on case
Important Clarification
- Bond Amount = total coverage required by law
- Bond Cost = what you actually pay (small percentage)
Quick example
A $50,000 bond does not cost $50,000 — you may only pay $500–$1,500.
How to Get the Lowest Rate
- Maintain strong credit
- Provide financial statements (for larger bonds)
- Show industry experience
- Apply with a reputable agency