How Much Does a Contractor Surety Bond Cost?

If you’re applying for a contractor license, one of the most common questions is: How much does a contractor surety bond cost? The answer depends on several factors, including your required bond amount, credit profile, and state licensing requirements. Understanding contractor bond pricing helps you budget properly and avoid delays in getting licensed.

At All American Bonds and Insurance, we specialize in contractor surety bonds and help contractors nationwide get approved quickly at competitive rates.

What Is the Cost of a Contractor Surety Bond?

A contractor surety bond does not cost the full bond amount. Instead, you pay a small percentage of the total bond amount, called the bond premium.

Most contractors pay between 0.5% and 10% of the bond amount per year, depending on risk factors.

Example:

• Required bond amount: $25,000

• Bond cost at 0.5%: $125 per year

• Bond cost at 5%: $1,250 per year

The bond amount itself is set by the state or licensing authority—not the surety bond agency.

What Factors Affect Contractor Surety Bond Cost?

1. Personal Credit Score

Credit is the primary factor in determining bond pricing.

• Strong credit qualifies for the lowest rates (often 0.5%–1%)

• Lower credit may result in higher premiums, but approvals are still common

2. Bond Amount Required

Higher bond requirements result in higher premiums, even if the rate remains the same.

3. State and License Type

Each state sets different bond requirements depending on license class, trade type, and business structure.

4. Financial History

Past bankruptcies, collections, or judgments can affect pricing, but they do not automatically disqualify you from approval.

Can You Get a Contractor Surety Bond With Bad Credit?

Yes. Contractors with challenged credit can still get approved. The bond rate may be higher, but working with a surety bond specialist significantly improves approval chances.

Many general insurance agents are unfamiliar with surety underwriting and submit applications incorrectly, causing unnecessary delays or higher rates.

All American Bonds and Insurance works with multiple surety markets to place contractors with the best option for their profile.

How Often Do Contractor Surety Bonds Need to Be Renewed?

Most contractor surety bonds are issued on a one-year term and must be renewed annually to keep your license active. Allowing your bond to lapse can lead to license suspension or revocation.

We help contractors track renewals and file bonds correctly to avoid compliance issues.

How to Get the Lowest Contractor Bond Cost

• Apply early to avoid last-minute licensing delays

• Maintain accurate personal credit information

• Resolve outstanding financial issues when possible

• Work with a surety bond specialist—not a general insurance agent

Why Choose All American Bonds and Insurance?

Contractors trust us because we provide:

• Fast approvals, often within 24–48 hours

• Access to multiple national surety markets

• Competitive pricing for all credit profiles

• Accurate bond preparation and filing with licensing agencies

You can start the process quickly and securely at QuickerBonds.com.