A bond is not insurance. It protects the other party, and you pay it back.
Licence, bid and performance bonds guarantee that you will meet an obligation. If the surety pays out, it recovers that money from you — which is the part most people get wrong.
Tell us the situation.
A licensed human replies the same business day — not an auto-responder, and not five producers calling at once. We shop it across our carriers and tell you if the policy you already have is the right one.
We use this to quote and service your insurance, and we do not sell it or pass it to lead networks. Privacy policy.
What surety bond businesses actually need.
Licence and permit bonds
Required by a state or city before it will issue your licence.
Without it — The licence is not issued and the work is not legal.
Bid bonds
Guarantees you will honour a bid you win and enter the contract.
Without it — You cannot bid public work, which usually requires one.
Performance and payment bonds
Guarantees the job is completed and that subcontractors and suppliers are paid.
Without it — The contract cannot be awarded.
Where surety bond shows up.
- Landscaping & Grounds Maintenance
Municipal and commercial grounds contracts are bid with a bond, and the licence itself requires one in states like California.
What surety bond operators ask us.
Why does the bond company want my personal financials?
Because a bond is closer to credit than to insurance. The surety is not accepting your risk, it is guaranteeing your performance and expecting to be reimbursed if it pays — so it underwrites your balance sheet, your working capital and usually a personal indemnity from the owners. That is also why bonding capacity grows with your financial statements rather than with your premium.
What does it cost?
Licence bonds are typically a flat annual figure on a modest penal sum. Contract bonds are priced as a percentage of the contract value, commonly around 1-3%, improving as your financials and track record strengthen. A poor credit history raises it sharply or requires collateral.