Surety Bond Rates Explained

Surety Bond Rates Explained

Surety bonds come in many types, many sizes…and many prices, ranging from as little as $100 to thousands of dollars. So, what determines the cost of a surety bond ? Well, a number of factors.

Bond Amount

Surety bond premiums (the amount you pay) are often calculated as a percentage of the total bond amount, usually between 0.5% and 5% of the bond amount for applicants with good credit, and between 5% up to as much as 20% of the bond amount for applicants with poor credit.


The bond amount is a critical factor to determining the price. A $10,000 notary bond with a premium of 1%, for example, will cost $100. Meanwhile a $100,000 construction performance bond, with just a slight increase to a 2% rate, will cost $2,000, which is twenty times the cost of the smaller bond.


The bond amount and the percentage of the amount that you pay as a premium are the two key data points when determining your bond rate, and both are based on how risky the bond is.

Bond Risk Evaluation

Higher risk bonds cost more than lower risk bonds. Surety bonds provide financial guarantees for your future work, so before issuing a bond, the surety must assess the riskiness of their guarantee. Higher risk = higher cost.


How do sureties determine the risk level of a surety bond? There are a few factors to this one, too.


To start with, certain bond types, like mortgage broker bonds have more claims made against them, making them higher risk than other bonds, such as notary bonds. Bonds with more claims made against them are generally more expensive.


The value of the bond relative to the item or work being guaranteed can also vary. For example, lost instrument bonds are often required to be bonded for one and a half to two times the amount of the lost instrument being protected, while construction bonds are generally only written up to the value of the work being performed. Higher bond amount = higher cost.

Individual Risk Evaluation

Sureties also evaluate the risk of individual applicants in order to determine their bond rate. Personal credit is often the most important factor in assessing one’s risk level, and thus, one’s bond rate.


Those with excellent credit can often secure a surety bond with a low percentage (often between 1% and 5%) of the total bond amount. For those with poor credit, it can be harder to secure a bond, with rates climbing to a range of 5% to 20% of the total bond amount.


For certain surety bonds, such as construction bonds, the surety will likely also consider an applicant’s business and work history, as well as business financials, before making a decision on bond pricing.

State Bonding Requirements

For many types of surety bonds, such as liquor license bonds, the requirements vary state to state, and even in some cases, by city or municipality. Some states have higher bonding amount requirements than others. For example, the cost for a bond in California may be different than the cost in Arizona.

Other Factors

There can be other factors that affect your surety bond rate, such as base premium rates, or agent and/or broker fees.

Your Bonding Provider

Surety bond rates vary, and working with the right bonding provider is important to get the best rate on the bond you need.

Get a Great Rate on Your Surety Bond

Viking Bond is licensed nationwide to provide surety bonds of all sizes and types. We have programs for clients with good credit, as well as those with bad credit in many situations. We can provide bonding quotes quickly, often in the same day.


Get in touch with us, by calling 1-888-278-7389, or by completing the application form on our website, and our friendly and knowledgeable team of surety bond professionals will assist you with your bonding needs.