Surety Bond Learning Center
Everything you need to know about surety bonds , explained simply.
SURETY BOND BASICS
What is a Surety Bond and How Does It Work?
A surety bond is a legally required guarantee that your business will follow the law or fulfill a contract. If you fail to meet your obligations the surety company pays the claim. Most bonds cost between $100 and $2,000 per year.
GET A QUOTE
FREIGHT BROKER BONDS
Freight Broker Bond Requirements
Every licensed freight broker must carry a $75,000 BMC-84 surety bond before the FMCSA will grant operating authority. Without it you cannot legally broker freight. Most brokers pay $900 to $1,800 per year depending on credit.
GET A QUOTE
AUTO DEALER BONDS
Texas Auto Dealer Bond
Texas TxDMV requires every licensed auto dealer to carry a surety bond before selling vehicles. Most Texas dealers need a $50,000 bond costing $200 to $400 per year.
GET A QUOTE
CONTRACTOR BONDS
Performance vs Payment Bond
A performance bond guarantees you complete the project. A payment bond guarantees you pay your subcontractors and suppliers. Most government contracts over $150,000 require both.
GET A QUOTE
CONTRACTOR BONDS
Contractor License Bond
Most Texas cities and counties require contractors to carry a license bond before pulling permits or getting licensed. Bonds range from $10,000 to $25,000 and cost $100 to $500 per year.
GET A QUOTE
BOND CLAIMS
Bond Claims
A bond claim is filed when you fail to meet your obligations. The surety investigates and pays valid claims. You then owe the surety the amount paid. Avoiding claims starts with understanding your bond requirements.
GET A QUOTE
BOND PRICING
Bond Cost
Your bond cost depends on your credit score, bond amount, and bond type. Good credit applicants pay 1% to 3% of the bond amount annually. Bad credit applicants pay more but can still get bonded.
GET A QUOTE
BAD CREDIT BONDS
Bad Credit Bonds
Yes you can get bonded with bad credit. Specialty surety markets exist for applicants with credit challenges. You may pay a higher premium but Prestige Bond Group works with multiple surety markets to help find the right fit for your credit profile.
GET A QUOTE