What Determines your Surety Bond Rate?

When it comes to the surety bond process, it’s important to have a surety bond producer who brings to the table expert knowledge and experience about surety bonds.  Yet, what exactly determines how much you pay for a surety bond?  Below are some factors to consider when applying for a surety bond.

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  • Your credit score is a determining factor in how much you pay. As with many financial applications, a credit score shows your financial history.   For some surety bonds with a lower risk of claims, a credit score is not necessary.  If an applicant has a low credit score, this should not deter them from applying for a surety bond.  It simply means that premium rate may be higher.  But if the application is approved, it will help in establishing a history of financial confidence for the next application.
  • The risk of a claim being filed is another factor to be considered. Some bonds are considered riskier than others because more errors can occur during the bonding process, this is usually determined by the rate of claims being filed against the specific bond.
  • A premium is determined by a percentage of the total bonded amount. The higher the bonded amount, the higher the surety bond rate will be.
  • The applicant’s financial history is a factor as well. If the history of the applicant shows financial confidence, it is seen as less of a risk.
  • Each bonding market demographic must meet different local and state regulations, and therefore, living in one area may impact your surety rate.

After the application is completed (including financial and personal records), the surety bond producer will carefully evaluate the application.  Some things that may be considered by the underwriter are the work history of the applicant, credit score and various financial records proving financial reliability.


Surety bond rates vary for different industries and businesses.  Some determining factors are the applicant’s credit score, the industrial risk of a claim being filed, the total bonded amount, the applicant’s financial history and where a surety bond is being applied for.

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.