How Much Does A Surety Bond Cost?

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The surety bond process can be overwhelming and confusing for newcomers. That’s why it’s important to have someone in your corner with knowledge and expertise about surety bonds. At Surety Bond Professionals, our expert agents are here to help. Many people have asked us, “How much does a surety bond cost? And what factors are involved in providing that final number?”

To answer this common question, we outline some of the factors that decide how much surety bonds cost. Of course, the easiest way to determine the cost for your specific needs is to request a quote. Learn more below, or request a quote through our online system today!

How much do bonds generally cost?

The pricing for contract and commercial surety bonds can vary but typically falls between .5% and 3% of the contract price or bond amount, based upon the type of bond required. The exact percentage is dependent upon the surety’s assessment of the risk involved with the guarantee being provided. Some bonds are more onerous and risky than others and likewise some applicants are stronger than others. This is why each situation is unique and there is a range of product pricing.

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What are the factors determining surety bond cost?

  • The frequency of claims against the specific type of bond being required.
  • The applicant’s information (credit score and sometimes business/personal financial information)

Your credit score

For some surety bonds, such as notary bonds, a credit score is not necessary. But, depending on what type of surety bond you are applying for, your credit may determine your rate. As with anything where a credit score is in examination, the higher the credit score, the lower the rate will be.  If an applicant does have a low credit score, this should not be a deterrent in applying for a surety bond.  It simply means that the surety bond rate may be a little higher.  But if approved, it will help in establishing a history of financial confidence for the next application.

The specific bond type

Some bonds are riskier than others.  For example, a contract bond vs a notary bond.  This is because more errors can occur during the bonding process (building homes vs. notarizing a document). When applying for a riskier bond (bonds that have a history of higher claims filed), the applicant should expect requests from the surety bond producer for extensive financial documentation.

Bond amount

The higher the bonded amount, the higher the rate will be. A surety bond is an agreement between three parties.  It protects against the potential errors of the applicant. Also, a surety bond rates is, usually, a percentage of the total bond amount.

Financial credits

The applicant’s financial history is also a factor which determines the surety bond rate. If the history of the applicant is trustworthy, it is seen as less of a risk to issue a bond.


Each bonding market must meet different regulations.  Therefore, living in one area may impact your surety rate and differs from state to state.

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How Can You Lower Your Bond Rates?

Many construction companies and businesses are constantly looking for ways to cut costs, while keeping a high level of quality for their business.  One of the best ways to do this is to try to make sure you get a lower surety bond rate. There are several factors that you can improve in order to lock in a lower rate:

Work with a surety bond producer who knows what they’re doing.

Don’t just work with anyone, but work with an expert in the field. Look for someone who has decades of experiences, as opposed to just a few years. This will help to ensure that you get the best rate. It will also help to have someone who knows how to work with an underwriter, with your best interest at heart.

Fix your credit problems.

If you have had credit problems in the past, it is important that you pay any outstanding payments. Also, look to improve your credit by being timely with your payments. This will help to prove your financial capability when applying for surety bonds. In the end, these factors make you a more attractive candidate during the application process.

Show your best.

Provide the best financial documentation you can. This is a good indicator if you are a good candidate for fulfilling all contractual obligations.

Keep applying!

The more bonded projects you complete successfully and on time will give surety bond producers and underwriters the confidence in bonding you. The more of a professional relationship you build with your surety bond producer, the better chance you have that they will go to bat for you if there is any sort of discrepancy in the application process.

Get A Quote

The best way to determine the surety bond cost for your specific needs is to simply request a quote. Get a quote online with Surety Bond Professionals today!