• All About Surety Bonds
  • What Are Surety Bonds
  • Surety Bond Types
  • Obtaining a Surety Bond
  • Cost of a Surety Bond
  • Bad Credit Surety Bond Program
  • Performance Surety Bonds
    • What are Performance Bonds
    • Performance Bond Requirements
    • Typical Performance Bond Costs
  • License Surety Bonds
  • Surety Bonds at Work
  • Importance of Surety Bonds
  • Ten things about Surety Bonds
  • The Miller Act
• Surety Bond Services
  • Services
  • Applications and Forms
  • Contact Us
  • About Us
• Commercial Surety Bonds
  • Court Bonds
    • Appeal Surety Bonds
    • Conservator Surety Bonds
    • Executor Surety Bonds
  • License & Permit Surety Bonds
    • Collection Agency Surety Bonds
    • Conduct Surety Bonds
    • Contractor License Surety Bonds
    • Cosmetology Surety Bonds
    • DMEPOS Surety Bonds
    • Driving School Surety Bonds
    • Health Club Surety Bonds
    • Liquor Surety Bonds
    • Mortgage Broker Surety Bonds
    • Mortgage Lender Surety Bonds
    • Motor Vehicle Dealer Surety Bonds
    • Pest Control Surety Bonds
  • ARC Surety Bonds
  • Farm Labor Surety Bonds
  • ICC/FMCSA Surety Bonds
  • IFTA Surety Bonds
  • Lease Guarantee Surety Bonds
  • Liquor Tax Surety Bonds
  • Lost Title Surety Bonds
  • Lottery Surety Bonds
  • Reclamation Surety Bonds
  • Sales Tax Surety Bonds
  • SDDC Surety Bonds
  • Tax Payer Surety Bonds
  • Utility Deposit Surety Bonds
  • Wage & Welfare Surety Bonds
• Contract Surety Bonds
  • Bid, Payment and Performance
  • Construction Surety Bonds
  • Subdivision Surety Bonds
  • Warranty Surety Bonds
• Fidelity Bonds
  • Business Services Fidelity Bonds
  • Dishonesty / Fidelity Bonds
  • Janitorial Services Fidelity Bonds

There are many factors that go into determining the cost of a Surety Bond, such as but not limited to; amount, type, state, Surety Company’s filed rate, Principal’s credit and / or financial standing, as well as any fees charged by the agent or broker.

The majority of cost associated with obtaining a Surety Bond in most cases comes from the Base Premium. The base premium is a rate determined by the Surety Company itself and is calculated by risk factors such as the type of Bond as well as the geographical region in which it is written. Risk factors are determined in a similar manner to standard insurance, such as vehicle insurance, whereas claims history for the type and specific region are analyzed in concert with other factors. Surety Companies each have their own formulas and practices for coming to risk determination decisions and these vary somewhat.

Commissions are paid to properly licensed agents and agencies when issuing a Surety Bond in most cases (but not all). A commission is a predetermined percentage of the base premium as per agency agreement between Surety and agent.

Fees are charged by agencies or brokers in many cases to supplement or replace commissions. In many instances small commissions must be split between agents, brokers, and other licensed third parties during the processing of a single bond file. Basic operating costs and overhead such as overnight fees, credit report charges, long distance faxes and phone calls, as well as paid producers who review files and coordinate with Principals, Sureties, and agents are incurred during the processing of Bond files. These costs in addition to multiple other expenses contribute to the need for charging fees in many cases.