How Much Does a Surety Bond Cost?
Surety bond costs vary, depending on the type of bond, the state in which the bond is meant to serve, and other factors such as the personal credit score of the applicant.
The amount that an applicant needs to pay for their surety bond is only a premium, a percentage of the total bond amount. Premiums are paid on an annual basis and can range between 1%-15% of the total bond amount. For example, the total bond amount of a freight broker bond is $75,000. If your premium is determined to be 4% of the total amount, you will have to pay $3000 in order to obtain that bond.
To get an initial ballpark estimate of how much your bond might cost, use our surety bond cost calculator below.
Surety Bond Cost Calculator
What determines the price of a surety bond?
A variety of factors are taken into account when determining the amount of an applicant’s surety bond premium. The most important consideration is personal credit history. Other important factors include: industry experience, how long you have been in business, and personal and business financial records.
Working with the right surety bond agency can also determine the cost of your surety bond premium. Bryant Surety Bonds works with a large network of A-rated and T-listed partner surety bond companies in all 50 states, and can offer you the lowest and best prices.
Surety bond rates are usually divided into two categories: standard market rates and high-risk applicant rates (also known as bad credit score rates).
Standard Market Surety Bond Cost
Standard markets rates for surety bonds range between 1%-4% of the total bond amount. Such rates are usually offered to applicants who have a good credit score of above 650, along with good indices in the other determining factors. For example, the standard market rates of a $10,000 surety bond vary between $100 and $400 per year.
Since bonds are underwritten on a case-by-case basis, the exact cost of the premium will vary for each bond applicant.
Bad Credit Surety Bond Costs
High-risk applicants are those who have bad credit (typically a FICO score below 650), bankruptcies, tax liens, unpaid collections or civil judgments. Many surety bond agencies decline to work with these applicants. However, through our bad credit surety bond program it is possible for you to obtain a surety bond, though at a slightly higher premium.
The cost of a high-risk surety bond will typically range between 5%-15% of the total bond amount. Non-standard market rates of a $10,000 bond will therefore vary between $500 and $1,500 per year.
By lowering your credit score over time, you can reduce the amount of your premium from one year to the next.
Get Your Surety Bond Today
To get your surety bond, all you need to do is apply online. Within minutes you will receive a free quote by one of our surety bond experts. After that, you can proceed with submitting your application along with all relevant documentation. If you have additional questions, you can always call us at (866)-450-3412. We will be happy to help you!