Question 1

What is a surety bond?

Accepted Answer

A surety bond is a three-party agreement that guarantees performance of an obligation. The principal (you) purchases the bond, the obligee (government/owner) requires it, and the surety (insurance company) backs your promise. Unlike insurance, you must repay the surety for any claims paid.

Question 2

How much do surety bonds cost?

Accepted Answer

Costs vary by bond type: Notary bonds start at $40-$100, contractor license bonds cost 1-3% of bond amount, performance bonds cost 0.5-3% of contract value, and freight broker bonds range $938-$15,000 annually.

Question 3

How fast can I get a surety bond?

Accepted Answer

Instant approval is available for notary bonds, contractor license bonds under $25K, and many license bonds. Performance bonds, payment bonds, auto dealer bonds, and freight broker bonds are approved within 24 hours.

Question 4

What is a performance bond?

Accepted Answer

A performance bond guarantees a contractor will complete a project according to contract terms. Required on federal projects over $150,000 under the Miller Act. If the contractor fails, the surety ensures project completion.

Question 5

Do all bonds require a credit check?

Accepted Answer

No. Instantly issued bonds like notary bonds and small license bonds don't require credit checks. Bonds requiring underwriting use a soft credit pull for pricing, which won't affect your credit score.

Question 6

Is a surety bond the same as insurance?

Accepted Answer

No. Insurance protects you from risk; a bond protects others from your failure. Insurance claims don't require repayment; bond claims must be fully repaid. You still need insurance (liability, workers comp) even when bonded.

Question 7

Which bonds can I get instantly?

Accepted Answer

Notary public bonds, most public official bonds up to $10,000, contractor license bonds up to $25,000, and some title bonds can be issued instantly without underwriting.

Question 8

Can you buy a surety bond online?

Accepted Answer

Yes. Most surety bonds can be purchased entirely online. Notary bonds, contractor license bonds, auto dealer bonds, and other license bonds are approved and issued digitally — no office visit or paper application required. You apply online, get approved (often instantly or within 24 hours), and receive your bond electronically. For larger bonds like performance bonds, you apply online and a surety underwriter reviews your submission, typically responding within one business day.

Question 9

Do I need a surety bond?

Accepted Answer

You need a surety bond if a government agency, court, or contract requires one. Common triggers: applying for a contractor license (36+ states require bonds), opening an auto dealership (all 50 states), becoming a notary public (30 states), obtaining freight broker authority (FMCSA requires a $75,000 BMC-84 bond), bidding on public construction projects (federal projects over $150,000 require bid, performance, and payment bonds under the Miller Act), or serving as a court-appointed fiduciary. If you're not sure, check with your state licensing board or the entity requiring the bond.

Question 10

Can anyone buy a surety bond?

Accepted Answer

Most people and businesses can obtain a surety bond. There is no minimum credit score requirement — we work with all credit levels through multiple Treasury-certified carriers. For standard license and permit bonds (notary, contractor, auto dealer), approval is straightforward. For larger contract bonds (performance, payment), the surety evaluates your financial statements, industry experience, and project scope. Individuals, sole proprietors, LLCs, corporations, and partnerships can all purchase surety bonds.

Question 11

How long does a surety bond last?

Accepted Answer

Bond terms vary by type and state. Most license bonds (contractor, auto dealer, notary) are annual — you pay a premium each year to keep the bond active. Some states use 2-year terms (Texas auto dealer, Georgia used dealer) or 3-year terms (Oregon, South Carolina). A few states issue continuous bonds with no expiration date (Ohio, Nevada, South Dakota). Performance and payment bonds last for the duration of the construction project plus a warranty period. Your bond documents specify the exact term.

Question 12

Who pays for a surety bond?

Accepted Answer

The principal — the person or business required to be bonded — pays the premium. For contractor license bonds, the contractor pays. For auto dealer bonds, the dealership pays. For performance bonds on construction projects, the general contractor pays (though the cost is typically factored into the bid price). The obligee (the government agency or project owner requiring the bond) does not pay for it. Bond premiums are a deductible business expense.

Question 13

How much does a $10,000 surety bond cost?

Accepted Answer

A $10,000 surety bond typically costs $100 to $500 per year depending on the bond type and your credit profile. With excellent credit (750+), expect $100-$200 (1-2% of the bond amount). With good credit (680-749), expect $200-$300 (2-3%). With fair or lower credit, rates range from $300-$500 (3-5%). Some $10,000 bonds — like notary bonds — can cost as little as $40-$60 because they have very low claim rates.

Question 14

Can a surety bond be cancelled?

Accepted Answer

Yes, but with conditions. The surety company can cancel a bond by sending written notice (typically 30-60 days) to both the principal and the obligee. The principal can request cancellation, but the obligee must release the bond — you cannot simply stop paying and walk away, as the bond remains in force until properly cancelled or replaced. If your bond is cancelled while you still hold a license, your license will typically be suspended until a new bond is filed. Cancelling a bond does not release you from liability for claims that occurred during the bond period.

Question 15

Where can I buy a surety bond?

Accepted Answer

You can buy a surety bond directly online from a licensed surety bond producer like BuySuretyBonds.com. We are licensed nationwide and work with Treasury-certified, A- minimum rated surety carriers. Apply online at buysuretybonds.com, get approved (instantly for qualifying bonds), and receive your bond electronically. No need to visit an office or find a local agent — surety bonds are issued digitally and accepted by obligees in all 50 states and Washington, D.C.

Bond Amount	Excellent	Good	Fair	Below
$5,000	$20–$40	$20–$55	$20–$80	$20–$100
$10,000	$20–$66	$22–$110	$32–$160	$40–$200
$15,000	$20–$99	$33–$165	$48–$240	$60–$300
$25,000	$33–$165	$55–$275	$80–$400	$100–$500
$50,000	$66–$330	$110–$550	$160–$800	$200–$1,000

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