What Determines a Surety Bond Rate?

You may wonder, “What exactly determines how much a bond costs?”  The exact pricing for a surety bond typically falls between 1/2% and 3% of the bonded amount.  The percentage often relies on the type of bond required.  But, there are several other factors which we’ve outlined below for you.

The Applicant

Whenever a business applies for a surety bond, they are asked to supply financial records.  Depending on the bond, this can include bank statements, personal financial records, other persons who have a role in the job, their references and financial records and the business’ financial records.  The longevity of the business and any other information the surety bond producer feels will be vital to assess the risk of a claim being filed against the business may also be evaluated.

The Industry

Certain industries have a higher chance of having a claim filed against them.  For example, someone filing for a notary surety bond has a very low chance of having a claim filed against them, whereas a used auto dealership will have a higher chance of having a claim filed against them.

The amount being bonded

If a business needs a surety bond for a higher amount, it can be expected that the premium will be higher.  But if it is a lower amount, logically, the premium required will be lower.  The benefit of posting a bond (there are three parties in a surety bond contract: the principal is the one who is required to obtain the bond, the obligee is the one requiring the bond and the surety bond producer is the one issuing the bond) for the principal, is that the principal will no longer have the burden of setting aside the full amount if a claim is filed against them.


The different factors that determine how much a premium will cost for a surety bond are: the industry, specifically the percentages of claims being filed against businesses in that industry, the applicant’s personal and business financial history, longevity of business, history of claims being filed against the business and how much the bonded amount is being required.


We here, at GotSuretyBonds.com are an independent bond-only agency, committed to the principles of service, integrity and professionalism. We view our clients, employees and underwriters as our “business family”. We strive to offer each and every one of them unsurpassed attention and support to ensure a mutually beneficial relationship.  We have a keen understanding that success for everyone is only possible through helping all of our constituents achieve their goals and objectives, we believe that a truly satisfied customer, employee or vendor is the best business strategy of all.  Our surety bonding services help create a blueprint for success. Our principals have relationships nationwide and have earned the trust of underwriters. Because of our credibility within the underwriting community and longevity in the industry, we are able to act as powerful advocates for our clients. We have a unique, tactical process to professionally design and present a thorough financial picture with risk and financial analyses to the surety market.