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Complete Guide
20 min read
Updated 2025

Complete Guide to Types of Surety Bonds

Comprehensive overview of all surety bond types, from contract bonds to specialty bonds. Understand requirements, costs, and which bonds you might need. BuySuretyBonds.com offers instant approval for license bonds and expert underwriting for performance bonds.

Bond Categories Overview

Contract Surety Bonds

Guarantee contract performance and payment

5 bond types

Commercial License Bonds

Required for business licenses and permits

5 bond types

Court & Fiduciary Bonds

Required by courts for legal proceedings

5 bond types

Federal Bonds

Required by federal agencies

5 bond types

Specialty & Miscellaneous Bonds

Industry-specific and unique requirements

5 bond types

Instant Approval Bonds

No credit check required for most instant bonds. Get approved and download your bond immediately online. Use our bond calculator to estimate costs before applying.

Notary Bonds

Instant

$5,000-$15,000

Small Contractor Bonds

Instant

Up to $25,000

Public Official Bonds

Instant

Up to $10,000

Business Service Bonds

Instant

Up to $50,000

Motor Vehicle Dealer Bonds

1 Day

Up to $100,000

Contract Surety Bonds

Guarantee contract performance and payment

Performance Bonds

Guarantee project completion

Requirement: Required for most public projects over $100,000
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Payment Bonds

Ensure subcontractors get paid

Requirement: Often paired with performance bonds
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Bid Bonds

Guarantee contractor will honor bid

Requirement: Required for competitive bidding
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Supply Bonds

Guarantee delivery of materials

Requirement: Material supply contracts
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Maintenance Bonds

Cover defects after completion

Requirement: 1-2 year warranty period
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Commercial License Bonds

Required for business licenses and permits

Contractor License Bonds

Required for contractor licensing

Requirement: $5,000-$100,000 depending on state
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Auto Dealer Bonds

Required for car dealerships

Requirement: $25,000-$100,000 by state
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Freight Broker Bonds

Federal BMC-84 requirement

Requirement: $75,000 federal requirement
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Notary Bonds

Required for notary commissions

Requirement: $5,000-$15,000 by state
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Health Club Bonds

Protect gym memberships

Requirement: Varies by contract length
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Court & Fiduciary Bonds

Required by courts for legal proceedings

Appeal Bonds

Required to appeal court decisions

Requirement: 110% of judgment amount
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Administrator Bonds

Required for estate administration

Requirement: Value of estate assets
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Guardian Bonds

Required for legal guardianship

Requirement: Value of ward's assets
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Probate Bonds

Required in probate proceedings

Requirement: Court-determined amount
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Injunction Bonds

Required for court injunctions

Requirement: Potential damages to defendant
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Federal Bonds

Required by federal agencies

Customs Bonds

Required for importing goods

Requirement: $50,000-$100,000 minimum
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SBA Bonds

Small Business Administration contracts

Requirement: Up to $6.5 million guaranteed
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Federal Contractor Bonds

Required for federal contracts

Requirement: Miller Act requirements
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Immigration Consultant Bonds

Required for immigration services

Requirement: $100,000 in California
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Medicare/Medicaid Bonds

Required for healthcare providers

Requirement: CMS requirements
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Specialty & Miscellaneous Bonds

Industry-specific and unique requirements

Lost Instrument Bonds

Replace lost securities/documents

Requirement: Value of lost instrument
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Wage & Welfare Bonds

Guarantee payment of benefits

Requirement: Union contract requirements
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Environmental Bonds

Guarantee cleanup obligations

Requirement: EPA and state requirements
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Utility Bonds

Required for utility deposits

Requirement: Utility company requirements
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Subdivision Bonds

Guarantee completion of improvements

Requirement: Municipal requirements
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Legal Requirements for Bonds

Miller Act (Federal)

Requires payment and performance bonds on federal projects over $100,000

Scope: All federal construction projects

Little Miller Acts (State)

State versions requiring bonds on public projects

Scope: 49 states have similar requirements

Licensing Requirements

Professional licensing bonds required by state agencies

Scope: Contractors, auto dealers, mortgage brokers, etc.

Court Requirements

Bonds required by courts for legal proceedings

Scope: Appeals, probate, guardianship, injunctions

How to Choose the Right Bond

✅ Determine Your Requirement

  • • Check with the requiring agency
  • • Review contract or license requirements
  • • Verify bond amount needed
  • • Confirm bond form requirements
  • Calculate estimated premium

✅ Consider Your Situation

  • • Evaluate your credit score
  • • Assess financial strength
  • • Consider processing timeline
  • • Compare multiple providers
  • Start your application online

Common Misconceptions About Surety Bonds

❌ "Bonds are insurance for me" - Bonds protect others from your actions, not you
❌ "I don't have to pay claims back" - You must repay the surety for any valid claims
❌ "All bonds cost the same" - Rates vary significantly by bond type and your qualifications
❌ "I only need one bond" - Many businesses need multiple bonds like contractor licenses, performance bonds, and payment bonds

Need Help Choosing the Right Bond?

Our experts can help you identify exactly which bonds you need and get you the best rates.