Contractor Bond Cost Guide

A surety bond is a three-party agreement between you, the bonding company, and your state or the client who required it. If you fail to meet your obligations — don't complete the work, don't pay subcontractors, violate licensing law — a claim can be paid out to the harmed party, and you are personally responsible for reimbursing the surety company. It protects the public, not your business.

Premiums are usually 1%-15% of the total bond amount per year, and credit score is the single biggest factor. A contractor with excellent credit (720+) might pay 1-3% of the bond amount, while someone with poor credit on the same bond could pay 10-15%. Years in business, financial statements, and past claims history also factor in for larger bonds.

A $10,000 bond required by your state license board might cost a contractor with great credit around $100-$300 a year, while the same bond could run $1,000-$1,500 for someone with poor credit — same bond, wildly different price.

Shop at least two or three surety agencies — pricing isn't standardized and can vary meaningfully for the same bond. Fixing errors on your credit report before applying, and having a couple years of clean financials ready if you're bonding above $25,000, both help. Our Surety Bond Calculator gives you a starting estimate by state, bond amount, and credit range before you talk to an agent.