How Much is a Surety Bond?

Unfortunately, this is not a question that we can easily answer. If you are one of our Bond clients, we can review your bond to inform you of “how much does a surety bond cost.” We work with some of the nation’s top-bonding agencies. No matter what type of bond you are going for, we have access to carriers that can help you achieve your business goals. Bonding is not expensive when you look at the importance of getting bonded. You see…when you are bonded, people want to conduct business with you. Prospective clients view you as a trustworthy person to work with. When people are looking to partner with someone, whether they need a general contractor, auctioneer company, or Insurance brokerage, they don’t want to conduct businesses with an entity that is not bonded and insured. Bonding is much less expensive compared to insurance. [Learn more about the difference between insurance and bonding.]

How Much Does a Surety Bond Cost?

The majority of bond types factor information like:

  • Type of Bonds (licensing, fiduciary, bid, performance, tax, public official, etc.)
  • The Bond Amount
  • The State you are Bond in
  • When you work with NFP to get your entity bonded, credit history is not always a factor. Yes, it can affect rates, but we have programs to help you get bonded even if your credit is damaged.

Why You Need A Surety Bond

Insurance carriers will tell you that bonds are defined as a contract among at least three parties. The first being the obligee, who is defined as the party who is the recipient of an obligation. Next, you have the principal, who is the party that must fully perform the obligations of the contract. Finally, you have the surety, and their role is to assure the obligee that the principal can successfully handle, and complete what is being asked to do in the surety.

How Surety Bonds Work

Bonds work by providing assurance that an individual or company will perform work or uphold other obligations under a legally binding three-party contract. This three-party contract includes the applicant, the surety, and the entity or person stating a bond is needed. The applicant is the obligor and principal, the surety is the guarantor, and the party requiring the bond is the obligee.

Depending on the type of bond needed, the applicant will need to answer various questions and may need to undergo a credit check. Bonds are available for most all credit profiles, and some are not as credit-dependent as others. The cost of the bond, of course, will increase with an increased credit or other ascertained risk, but it will always only be a portion of the total bond amount.

Once the surety, fidelity bond, court, or license bond is obtained, the guarantor or obligor will provide proof of the bond purchase to the obligee. This provides assurance to the obligee that all promises made in the bond contract will be met since the obligor will want to avoid a claim being made on the bond at most any cost. A claim can be made on the bond if the obligee feels they can prove that the applicant did not uphold their end of the contract. That being said, it’s tough to answer questions like ‘how much is a surety bond’, ‘how much of a bond do you pay’, or ‘how much does a surety bond cost’. The best thing to do is reach out to NFP to start that conversation.


NFP has been the industry’s leading bond company since 1984. Our team of experienced bonding agents are eager to help you. If you are not a current client and would like us to make sure you and your business are properly bonded, please contact us today.