Need a surety bond? Learn the steps, requirements, and key considerations to get the right bond for your project or business, plus how Acrisure can guide you through the process.
Blog
March 17, 2026
Key Takeaways: How to Get a Surety Bond
- A surety bond is financial guarantee that helps ensure a business or individual fulfills certain obligations required by a contract, license or regulation.
- The process typically involves identifying the right bond, applying through a reputable agency, and completing the underwriting process.
- Credit score, financial stability, and documentation accuracy can affect approval and premium costs.
- Contractors, business owners, and individuals may need different types of surety bonds, such as a license bond, permit bond, contract bond (including payment bonds), court bond, or fidelity bond.
- Working with an experienced surety professional, like those at Acrisure, can help simplify the process.
Understanding when and how to obtain surety bonds can seem challenging, especially if you are new to the concept. Whether you are a contractor aiming to secure a construction project or a small business owner required to obtain a license, understanding the process of getting a surety bond is crucial.
In this overview, we will walk you through the basic steps to acquire a surety bond, explain its importance, and highlight key considerations to help ensure a smooth bonding process.
What Is a Surety Bond?
A surety bond is a three-party agreement typically involving the principal (you), the obligee (the entity requiring the bond), and the surety (the company backing the bond). The surety provides a transactional and/or financial guarantee to the obligee that the principal will fulfill their obligations as per the terms of the bond. If the principal fails to meet their commitments, the surety steps in to cover the obligee's losses up to the bond amount.
For example, a construction contractor might need a surety bond to ensure the successful completion of a project in accordance with the terms and conditions set forth in the contract with a client. A contractor awarded a government infrastructure project would typically be required to obtain a performance bond, which helps protect the project owner by guaranteeing the contractor will complete the work to specified standards and on schedule. In many cases—especially for government funded projects—a payment bond is also required. Payment bonds work alongside performance bonds to ensure subcontractors, suppliers, and laborers are paid appropriately for their work.
In the event the contractor fails to meet these obligations, the bond may provide a remedy to help make the obligee whole, which could include hiring another contractor to complete the work. This helps mitigate the risk for the project owner and ensures that public or private projects are delivered as promised.
Learn more about what a surety bond means.
Common reasons you may need a surety bond:
- Qualify for a construction bid
- Guarantee a construction contract
- Securing a business license or permit
- Appealing a court decision
- Meeting contract terms for public or private projects
Types of Surety Bonds
Before delving into the bonding process, familiarize yourself with the common types of surety bonds available. These bonds fall into several categories, including:
1. Contract Bonds: Contract bonds are commonly used in the construction industry to guarantee project completion. They encompass bid bonds, performance bonds, and payment bonds.
2. Commercial Bonds: This category includes a range of bonds required for businesses and developers, such as subdivision bonds and escrow deposit bonds, which help ensure completion of public improvements and provides developers with working capital to be used towards the construction of a project. Commercial bonds also typically cover many of the license and permit requirements businesses must meet to comply with laws and regulations.
3. Court Bonds: Court bonds are typically required in legal proceedings, including appeal bonds and guardianship bonds, to help ensure payment or proper performance of duties.
4. Fidelity Bonds: Fidelity bonds help protect businesses against losses caused by employee theft or dishonesty.
Remember, obtaining a bond commits you to certain obligations.
Remember, obtaining a bond commits you to certain obligations.
How to Obtain a Surety Bond: 7 Basic Steps
Wondering the steps to how to get a surety bond? Here are the seven basic steps to obtain one.
1. Determine Your Bond Type and Amount
The first step in obtaining a surety bond is identifying the type of bond required for your specific situation. Working with a surety professional can help. Consult with the obligee to understand the bonding requirements and determine the appropriate bond amount, as this can affect the cost and approval process.
2. Choose a Reputable Bonding Agency
Partnering with a reliable surety bonding agency is essential. Look for a licensed agency with experience issuing bonds and knowledgeable professionals who can help guide you through the process.
3. Complete the Application Process
Once you've selected a bonding agency, you'll typically complete an application or questionnaire. Be prepared to provide personal and business information, financial statements, and details about the project or obligation associated with the bond.
4. Undergo Financial Review
During the underwriting process, the surety may review your financial stability to determine your risk profile. This review will typically include an examination of your credit score, business financials, and past project performance. A strong financial position can help improve your chances of approval and potentially result in a lower bond premium.
5. Receive a Bond
After reviewing your application, the surety will provide the terms and conditions of the bond. This premium is typically a small percentage of the total bond amount and may be influenced by factors like your creditworthiness and bond type.
6. Pay the Premium
If you accept the terms and conditions, you will need to pay the applicable premium for the surety bond.
7. Obtain Your Bond
You'll receive the bond documents needed to be filed with the obligee to satisfy the bonding requirement.
Key Considerations: How to Get a Surety Bond
Credit Score: A higher credit score may help reduce your bond premium.
Financial Documentation: Ensure all your financial documents are accurate and up to date. Transparency with the surety can facilitate a smoother approval process.
Ongoing Obligations: Remember, obtaining a bond commits you to certain obligations. Failing to meet those obligations could result in claims against the bond and could affect future bonding opportunities.
In Conclusion
The process of acquiring a surety bond includes understanding your obligations, choosing the right bonding agency, and preparing the necessary documentation. By following these steps and considerations, you may be able to navigate the bonding process confidently.
Whether you're a contractor, a developer, an energy company, a business owner, or involved in a court proceeding, a surety bond can help provide the credibility, security, and assurance needed to support your operations.
If you have further questions about surety bonds or would like assistance, Acrisure can guide you through the process with personalized surety bond solutions to help meet your needs.
How to Get a Surety Bond Frequently Asked Questions
What documents do I need to obtain a surety bond?
Requirements vary depending on the size and type of bond, but applicants are typically asked to provide personal ID, business information, financial statements, credit authorization, and details about the bonded obligation.
How much does a surety bond typically cost?
Surety bond premiums typically range from about 1% to10% of the bond amount, depending on a variety of factors including credit score, financial strength, and bond type.
Can I get a surety bond with bad credit?
In some cases, it may be possible to obtain a surety bond with lower credit, depending on the bond type and underwriting review. However, premiums may be higher and approval is not guaranteed.
How long does it typically take to get a surety bond?
In many cases, surety bonds can be issued shortly after approval, with many bonds issued within 24–72 hours. More complex bonds may require additional underwriting which would result in a longer process.
Where can I get a surety bond?
Through a licensed surety bonding agency or broker. Acrisure offers access to experienced professionals who can help guide you through the bonding process.
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