The cost of a one million dollar surety bond will depend primarily on the type of bond you need, as well as your personal credit score. However, one thing is for sure: the bond does not cost a million dollars. Surety bonds are paid in premiums, which are normally between 1% and 5%. That means that a one million dollar bond, quoted at 1%, will cost $10,000.
Keep in mind that this is only a rough estimate. The best way to find out your exact premium is by submitting an online application.
While your personal credit score is very important, additional items in your credit report as well as your financial statements can also affect your premium. You can find more information in our surety bond cost guide.
How to Get a Million Dollar Bond with Bad Credit?
Getting a $1 million bond is possible even if you have issues with your credit score. The cost will likely go up to between 5% and 15% a year. In other words, it will cost between $50,000 and $150,000 a year.
However, there are some caveats. Firstly, this is only valid for license bonds and not construction bonds. A license bond is required as part of the process of getting your business licensed, while construction bonds are required for work on large construction projects. Currently, there are no high-risk markets for construction bonds, so only applicants with a good credit score can obtain them.
Secondly, some red flags in your credit report can lead to the rejection of your application, even if you are applying for a license bond. They include late child support payments or open bankruptcies.
Most Common 1 Million Dollar Surety Bonds
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