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Surety Bonds

We offer flexible payment plans to fit any budget needs.

We offer flexible payment plans to fit any budget needs.

We've helped over 60,000 employers buy more affordable insurance coverage.

We've helped over 60,000 employers buy more affordable insurance coverage.

We shop your coverage with up to 35 national carriers.

We shop your coverage with up to 35 national carriers.

We shop your commercial insurance to save you time and money.

What is a Bond?

There are two types of bonds; surety and fidelity. A surety bond is a contract between three parties—the principal (you), the insurance carrier (the surety) and the obligee (the entity requiring the bond). The contract guarantees to the obligee that the insurance carrier, or surety, will financially assure the principal will act in accordance with the terms established by the bond. In other words, the insurance carrier will pay your client, or entity requiring bond, should you fail to deliver the goods or services agreed upon. This is one of the only examples of insurance that is bought to cover a third-party from loss. When a contractor receives a deposit before fixing a customer’s roof, for example, he/she is expected to come back to fix the roof. If the contractor fails to fix the roof in a timely manner, as agreed upon in the contract, or fails to finish fixing the roof, then he/she has defaulted on their end of the contract, leaving the customer with unfinished work and a lost deposit. The customer, in this case, would have a valid claim against the contractor so the surety bond would cover the customer’s losses. This is a common scenario, unfortunately, and the reason why surety bonds are required for certain industries. Professions with statistically high risk of customer loss claims have been regulated by state and federal governments to protect third-parties from fraud, court costs and negligence.

There are over 50,000 types of surety bonds in the United States, based on bond requirements, bond amounts and state regulations. There are several reasons your business may need to carry a bond.

  1. You need to get licensed.
    • Certain industries require surety bonds to get licensed, they are typically referred to as license and permit bonds. Common license and permit bonds include:
      • Motor vehicle dealer bonds.
      • Mortgage broker bonds.
      • Contractor license bonds.
      • Collection agency bonds.
      • Private investigator bonds.
  2. You need one for a construction project.
    • It is common for construction contracts to require contractors to have surety bonds in place. Known as contract bonds, these commonly include:
      • Payment bonds.
      • Bid bonds.
      • Performance bonds.
  3. You need one for a court proceeding.
    • Sometimes a court of law will require a court bond before court proceedings commence. Court bonds ensure protection against possible losses as a result of court decisions and commonly include:
      • Cost bonds.
      • Indemnity to sheriff bonds.
      • Replevin bonds.
  4. You want to add marketing value to your business.
    • Not all bonds are bought because they are required. A fidelity bond is an optional bond that can add value to your business. This type of bond protects your customers from employee theft, fraud or embezzlement (not otherwise covered by business insurance). There are many types of fidelity bonds, some businesses known to benefit from these bonds include:
      • Janitorial services.
      • Bookkeepers.
      • Landscape services.

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fast

Our bond specialists give undivided attention, ensuring you get the right bond, quickly, so you can get back to work.

  • National bond specialists.
  • Licensed throughout the United States.
  • Turnaround as quick as same-day!
Compare quotes from over 35 carriers.

Compare quotes
from multiple carriers

We take the time to help you understand your options and take the next steps to get you bonded quickly.

  • Financing available.
  • We also offer fidelity bonds to add value to your business.
  • We continue to follow up after purchase; our service to you never ends.

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Surety Bonds
We shop your commercial insurance to save you time and money.

Why do I need a Surety Bond?

In the majority of cases, you need a surety bond because it is required by law before you can do business. A bond may be required by such entities as a licensing board, a utility or the state, such as sales tax bonds. Some common industries with bond requirements include appraisal services, auto and mobile home dealers as well as contractors. Most businesses have some bond requirements, either for licensure or utilities.

What do Surety Bonds Cost?

Pricing a surety bond is fairly simple. The premium for a surety bond is a percentage of the bond amount. The percentage is determined based on your personal credit rating. A majority of surety bonds are written for between $5,000 and $25,000. Higher bond amounts can be purchased, depending on the bond requirements, for higher premiums.

Surety bonds generally have a one year term limit, with renewal options. Premiums are paid at the time of binding, and typically don’t exceed $1,000 (based on credit and amount of bond). The Insurance Shop knows that when it comes to required coverage, shopping can be hard. Requirements may be given to you, but how do you assure you are purchasing the right product to fulfill those requirements? Perhaps your requiring entity gave you the bond form, now what? Our experts issue surety bonds in every state. With encyclopedic knowledge of the many types of bonds and industry regulations surrounding them, you can be sure that you will get the right product required of you to start work. With over 35 national carriers, we can offer fast turnaround and competitive prices in every state. Give us a call or start a quote online and we will get to work for you.

Frequently Asked Questions

  1. How long does it take to get bonded?
  2. In some cases, getting bonded can be an instant process. However, the majority of the time we can have you bonded between 12–48 hours after first contact. This time depends on several factors such as type of bond, amount of bond and promptness of your premium payment.

  3. Is there any benefit to getting a surety bond if I’m not required to have one?
  4. There are not many reasons to get a surety bond if you’re not required to have one. Having a fidelity bond, however, can greatly increase the perceived value of your business. A fidelity bond is essentially an extra layer of protection for your customers against employee dishonestly, which gives them peace of mind when your employees are left alone on worksites, for example.

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