How Much Does a Surety Bond Cost?

A surety bond is a three-party agreement among the surety company, the contractor (principal), and the owner (obligee) and is often required for many government jobs, construction jobs or even by the court system in order to protect the consumers.

The surety company assures the owner, through the surety bond, that the contractor will perform the contract.  A surety bond is not an insurance policy, although the issuing party of the surety bond is most often an insurance company.  It is the owner who specifies the bond agreement in the contract documents.

The contractor or principal assumes the obligations to fulfill the contract agreement between them and the owner, while the owner is the recipient of the obligation.

The surety company is simply the go-between of the other two parties, making sure that everything is done fairly in a timely manner.

How much does a surety bond cost?

Bond Rate
Bond Amount
        
$10,000$15,000
$20,000$25,000$30,000$35,000$40,000$45,000$50,000
1%
$100
$150
$200
$250
$300
$350
$400
$450
$500
2%
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
3%
$300
$450
$600
$750
$900
$1,050
$1,200
$1,350
$1,500
4%
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
5%
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
6%
$600
$900
$1,200
$1,500
$1,800
$2,100
$2,400
$2,700
$3,000
7%
$700
$1,050
$1,400
$1,750
$2,100
$2,450
$2,800
$3,150
$3,500
8%
$800
$1,200
$1,600
$2,000
$2,400
$2,800
$3,200
$3,600
$4,000
9%
$900
$1,350
$1,800
$2,250
$2,700
$3,150
$3,600
$4,050
$4,500
10%
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
11%
$1,100
$1,650
$2,200
$2,750
$3,300
$3,850
$4,400
$4,950
$5,500
12%
$1,200$1,800$2,400
$3,000
$3,600
$4,200
$4,800
$5,400
$6,000
13%
$1,300$1,950$2,600
$3,250
$3,900
$4,550
$5,200
$5,850
$6,500
14%
$1,400$2,100$2,800
$3,500
$4,200
$4,900
$5,600
$6,300
$7,000
15%
$1,500$2,250$3,000
$3,750
$4,500
$5,250
$6,000
$6,750
$7,500
Bond Amount680 and up (great)680 - 600 (okay score)599 or less (bad score)
$5,000$50$150$250 to $600
$15,000$150$450$600 to $1,800
$25,000$250$700$1,000 to $3,000
$40,000$400$1,000$2,000 to $5,000
$50,000$500 $1,500$2,000 to $6,000
$75,000$750$2,000$4,000 to $10,000
$100,000$1,000$3,000$5,000 to $13,000
TypeCost
Car Dealer BondRequired before someone can open a car dealership and often range from 1 to 15 percent of your total bond amount.
Lost Title BondThe cost will depend on the vehicle the applicant is titling. In most cases, states require a lost title bond in the amount of two times the value of the car being titled.
Notary BondDepending on the size of the bond, the costs can range from $50 to $200 per year.
Performance BondOften purchased by construction contractors who won a bid. Depending on the scope of the project, the costs are generally within the 0.5 to 2 percent of the bond value range.

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