License, Bid & Performance Bonds · Nationwide
Contractor Surety Bonds
A bond isn't insurance — it's a guarantee. Get the exact license, bid, or performance bond your project or licensing board requires, quoted and processed entirely online by a real licensed agent.
A surety bond is a three-party agreement: you (the principal) promise to perform certain work or meet certain obligations, a project owner or licensing board (the obligee) requires proof of that promise, and a surety guarantees it. If you fail to meet your obligation and a valid claim is paid out, you're contractually required to repay the surety — which is the key structural difference from insurance. It's a distinction that catches a lot of contractors off guard the first time they need to get bonded, and it's worth understanding clearly before you apply.
Getting bonded doesn't require an office visit or a stack of paperwork mailed back and forth. You tell us what type of bond your license board, GC, or project requires and the bond amount, and a licensed agent at Contractors Choice Agency — founded in 2005, licensed to write commercial insurance in all 50 states — reviews your application and gets you a quote from our surety partners. Approve it, sign electronically, and we get your bond issued.
Bond Types
The bonds contractors ask us for most
Different projects and licenses call for different bond types. Here are the ones we help contractors secure most often:
License & Permit Bonds
Required by many state and municipal licensing boards before they'll issue or renew a contractor license — guarantees you'll comply with the licensing regulations and codes governing your trade.
Bid Bonds
Submitted with a bid on a public or large private project, guaranteeing that if you win the bid, you'll actually sign the contract and provide the required performance and payment bonds.
Performance Bonds
Guarantees to the project owner that you'll complete the contracted work according to the terms of the contract — if you don't, the surety steps in to see the project finished.
Payment Bonds
Guarantees that your subcontractors and material suppliers get paid for their work and materials, protecting the project owner from liens filed against the property.
Maintenance Bonds
Covers defects in materials or workmanship that show up after a project is completed, typically for a set warranty period defined in the contract.
Court & Fiduciary Bonds
A less common category some contracting businesses encounter in disputes or specific legal proceedings — guarantees compliance with a court order or fiduciary duty.
Bond vs. Insurance
Why a bond isn't insurance, and why you probably need both
General liability insurance protects your business — if a third party is injured or their property is damaged because of your work, your policy pays the claim, and that's the end of it; you don't owe the insurance company anything back. A surety bond works differently: it protects the party who required it (the obligee), not you. If a valid claim is made against your bond and the surety pays it out, you are personally or corporately on the hook to repay the surety in full. In practice, a bond functions more like a line of credit backed by a guarantee than like traditional insurance.
That structural difference is exactly why bonds are underwritten so differently — a surety looks closely at your credit history, financial statements, and track record, because they're evaluating your ability to repay a potential claim, not just pricing risk the way a liability insurer does. Most contractors end up needing both: general liability to protect against third-party claims arising from your work, and a bond to satisfy a licensing board's or project owner's requirement that you'll perform as promised.
Cost
What does a contractor surety bond cost?
Bond premiums for well-qualified contractors typically run 1% to 3% of the total bond amount. A $30,000 license bond, for example, might cost a few hundred dollars a year for a contractor with strong personal credit, while the same bond can cost meaningfully more for a contractor with limited credit history or a past claim. Bond amounts themselves are usually set by whoever requires the bond — a licensing board, a project owner, or a bid specification — rather than chosen by the contractor, and common amounts range from a few thousand dollars for a local license bond up to hundreds of thousands or more for performance bonds on larger public projects.
Personal and business credit history
Bond amount required
Years in business and industry experience
Financial statements (for larger bonds)
Prior bond or insurance claims history
Type of bond and obligee requirements
Most bonds offer monthly or annual payment options depending on the surety and bond type — a licensed agent can walk you through what's available for your specific bond during the quote process.
Getting Approved
How hard is it to get bonded?
For most small and mid-sized license and permit bonds, qualifying is more straightforward than contractors expect — a surety mainly reviews your personal credit and, for larger bonds, some basic business information, rather than requiring an exhaustive financial review. Well-qualified contractors with solid credit are often approved quickly and at the lower end of the 1-3% premium range. Contractors with limited credit history, a past bankruptcy, or a prior bond claim can usually still get bonded, though often at a higher premium rate to reflect the added risk the surety is taking on.
Larger performance and payment bonds for sizable public projects involve more underwriting — financial statements, work-in-progress schedules, and a track record of completed projects typically come into play once bond amounts climb into the hundreds of thousands of dollars or more. A licensed agent can tell you upfront what documentation your specific bond amount and type will require, so there are no surprises partway through a bid deadline.
Who Needs a Bond
When contractors are asked to get bonded
State & Local Licensing
Many state and municipal licensing boards require a license bond on file as a condition of getting or keeping your contractor license, separate from any insurance requirement.
Public Project Bidding
Federal, state, and municipal construction contracts typically require bid, performance, and payment bonds before a contractor can even submit a bid on a public project.
GC & Subcontractor Requirements
Some general contractors require subcontractors to carry a minimum bond amount alongside general liability insurance before awarding a subcontract.
Private Project Owners
Even outside public projects, a private developer or property owner may specify a performance or payment bond in the contract terms for a larger renovation or build.
The Process
Quoted and bonded — all online
You never have to visit an office to get bonded. Tell us the bond type, the amount required, and who's requiring it, and a licensed agent reviews your application and gets a quote from our surety partners. Sign electronically once you approve, and we'll get your bond issued and delivered digitally — ready to submit to your licensing board or project owner. If you also need proof of active insurance coverage, your certificate of insurance can be issued the same way. See the full breakdown on our How It Works page.
Frequently Asked Questions
Surety bond questions we hear often
What's the difference between a surety bond and general liability insurance?
A surety bond is a repayable guarantee to a project owner or licensing board that you'll perform the work or meet license requirements — if a claim is paid, you owe that money back. General liability insurance is non-repayable protection against third-party claims.
How much does a contractor surety bond typically cost?
Bond premiums for well-qualified contractors typically run 1-3% of the total bond amount, though rates can be higher for contractors with limited credit history or past claims.
Which coverage do most general contractors require subcontractors to carry?
General liability insurance is almost universally required, with workers' compensation close behind for any subcontractor with employees. Some GCs also require a minimum bond amount or additional-insured status.
Do I need to pay in full, or can I set up monthly payments?
Most policies offer monthly payment plans in addition to paying in full — we can walk you through the options available for your specific policy during the quote process.
Ready to get bonded?
Call 844-967-5247 or request a free quote online — a licensed agent will respond within 1 business day.