Surety Bond Rates

A surety bond helps to ensure that a specific person or business meets an obligation that they have under a contract.

One of the most common questions is “How much does a surety bond cost?”. The answer is “It depends.” 
Surety bond costs vary greatly. How do you know you are getting the best rate?


How Surety Bond Rates Are Calculated

Most surety bond rates are calculated based off your credit score. Depending on your credit score, you might pay anywhere between 1-15% of the total bond amount.

That’s right; you do not have to pay the full bond amount to get bonded. 

Standard surety bond rates run from less than 1% to 3%, while rates for higher-risk companies and individuals run from 4% to 15% of the total bond amount.

Here’s a chart to help you understand how much you’d pay for a bond based on your credit score:


surety bond rate

Note that a good surety bond company will have bad credit options.


Browse available surety bonds. Get a free quote.


How to get the Best Surety Bond Rate

To get the best surety bond rate, you need to have a history of success, so that the surety bond company has confidence that you will not need to use the bond.

If you’re new to your business, you need to know that industry and personal experience are considered as part of your surety bond rate. Your financial picture and the financial background of your business are also relevant, since a short or shaky financial background or limited experience in the business can make you a higher risk.
When you’re shopping for a surety bond rate, ask a company about their range of rates, and see what you can do to make those rates lower. 

Beyond Surety Bond Rates

What else should you look for when you’re seeking a surety bond? Price isn’t the only factor to consider.
Just as the surety bond company will look into your background, do the same with their company.
Questions to ask the surety company:
  • Ask for references.
  • If you’re a new company, ask them about their history working with customers like you.
  • Ask for testimonials from past clients.
  • Although you don’t want to default on the bond, look at the options provided if the worst does happen.
  • Can you re-bid, or bring in a replacement contractor? 
  • How does their bond claim process work?

Surety bond rates depend on many different factors that revolve around your company’s history and financial background.

Finding good surety bond rates depends on two things:
1. Your ability to present a solid financial and organizational case to a bond company and
2. Your ability to find a surety bond company that works with businesses like yours.

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