Surety Bond Cost

How much does a Surety bond cost? The answer to this mysterious question is it depends….
Surety bonds are underwritten similar to a loan.
The cost of a bond varies; it is based off of the surety bond type, bond amount, the company you have applied with, your financial stability, personal credit, business credit and the state the bond will be written in. Each surety bonding company has its own filled rates so pricing will vary. Most surety bonding companies have minimum premiums. You may find a surety bonding company that has a minimum premium for a $10,000 bond at $250 where as others may have a minimum of $350. Your credit, financial stability and your bond type play the biggest factors on your cost. Bond rates are on a sliding scale now so if you are applying for a $25,000 bond the cost can be anywhere between 1% to 25% depending on your scenario Example if you have a great credit rating and your financials can cover a $25,000 bond the cost could be 1% ($25,000 X 1% =$250.00). Do to the economy and the increasing amount of bond claims for certain bond types it has been harder to obtain preferred pricing of 1%. If you have less than perfect credit the cost of the bond will be higher. Normally clients that do not qualify for bonding are paying rates at a 10% to 25% rate. Some bonds are going to be higher because the bond form may be considered hazardous like ICC bonds. Do you need to know what is a surety bond ?