Surety Bonds
Guarantee your obligations, build trust, and meet requirements — online in minutes.
- Meet Legal and Contractual Requirements
- Build Trust with Clients and Partners
- Protect Against Financial Loss from Non-Performance
What Is a Surety Bond?
A surety bond is a three-party agreement designed to guarantee performance, compliance, or financial assurance. It involves three key parties:
- Principal: The person or business required to obtain the bond (you!)
- Obligee: The entity requiring the bond (often a government agency or project owner)
- Surety: The company that issues the bond and guarantees the principal will meet their obligations
Surety bonds build trust, keep you compliant with laws, and protect clients by guaranteeing that you’ll meet your obligations.
Surety bonds are also often required by law. For example:
- Contractors need bonds for government projects
- Auto dealers need license bonds to operate
- Court bonds may be required during legal cases
Requirements vary depending on the industry and location.
License and Permit Bonds
License and permit bonds, also known as commercial bonds, guarantee a business adheres to industry regulations (e.g., a car dealership maintaining proper licensing). They are often required to obtain business licenses, stay compliant with laws, and cover a variety of business types.
Examples:
- Alcohol/liquor
- Auto dealers
- Collection agencies
- Contractors
- Freight brokers
- Fuel tax
- Insurance brokers
- Medicare DMEPOS*
- Money transmitters
- Mortgage brokers
- Public adjusters
- Process servers
- Sales tax
- Title agencies
- Notaries
*Durable Medical Equipment, Prosthetics, Orthotics, and Supplies
Fidelity Bonds
Fidelity bonds protect businesses from financial losses caused by employee dishonesty, property damage, or theft. They help ensure that employees act responsibly and maintain trust within the organization. You might find these listed as:
- Business service bonds
- ERISA* bonds
- Financial institution bonds
*Employee Retirement Income Security Act
Contractor Bonds
Contractor bonds guarantee that contractors fulfill their project obligations, including completing construction on time and paying subcontractors. These bonds are often required to secure work and comply with local regulations, and are available for several different types of construction-related obligations.
Examples:
- Bidding
- Performance
- Payment
- Maintenance
- Supply Bonds
- Service contracts
- Subdivision/aite improvement
- Warranties
How Does a Surety Bond Work?
A surety bond holds you accountable. If you don’t meet the bond’s terms (e.g., completing a project or following regulations), a claim can be made against your bond. The surety company steps in, investigates, and pays the obligee if the claim is valid. You’re then responsible for repaying the surety company for any amount they covered.
Surety Bonds vs. Insurance
While they may seem similar, surety bonds and insurance serve different purposes. Surety bonds guarantee your performance or compliance to protect the obligee, while insurance protects you against third-party liabilities or losses.
Who Needs Surety Bonds?
A wide range of industries and professionals benefit from surety bonds, including:
- Contractors and construction professionals
- Auto dealers
- Notaries
- Cleaning and janitorial services
- Freight brokers — and many more
How Much Do Surety Bonds Cost?
Surety bonds typically range from 1% to 15% of the bond amount. If your bond is for $10,000, the cost could range from $100 to $1,500 annually. The cost of a surety bond depends on:
- The bond amount required
- Your credit history and financial strength
- The type of bond
How to Apply for a Surety Bond
Simplify bonding with Insurance Canopy by following these steps:
- Pick your bond: Find the right surety bond for your business or project.
- Complete your application: Provide the required info in just minutes.
- Secure your bond: Make your payment and receive your bond confirmation fast!
Why Small Businesses Love Insurance Canopy
With Insurance Canopy, you don’t have to choose between affordability and quality coverage. Instead, you get the best of both worlds: A+ rated insurance for a competitively low price. See what else our customers have to say about us!
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TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.
Tenisha J.
February 4, 2025Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.
Ed Levitt
February 3, 2025As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More
Kristie Williams
January 30, 2025 -
This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.
Tony Felix
January 23, 2025Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.
John B
January 16, 2025I’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More
jay gedeon
January 6, 2025 -
Super easy to use and great service; I had a little error from my part and needed to correct it customer service was super helpful they guided me through the... Read More
Ana Zavala
January 6, 2025I needed some liability insurance for my business. The team at Insurance Canopy had great recommendations and the insurance was reasonable for the coverage. Web site and process... Read More
Susan Tedesco
January 6, 2025Great coverage, excellent price, terrific customer service. I checked out a lot of different carriers and they had the best reputation and coverage. Since most venues require insurance, it was... Read More
Steve Bryant
January 6, 2025 -
Was waiting for two other insurance companies to get back to me for over 2 1/2 weeks and losing money every day. Sitting here, frustrated I asked ChatGPT what... Read More
Chad Laibly
January 6, 2025Great and affordable insurance
Peter DAntoni
December 6, 2024Being a caricaturist, I never understood why I needed liability insurance, but it got to that point where I was missing opportunities because of it. So, I researched a bit... Read More
Paul McNeilly
November 12, 2024 -
I’m just saying that is easy to get the vendors insurance with this company
Silvia Delgado
November 6, 2024Definitely a great asset to my business, I have never had a problem getting what I need from IC. Good communication skills, always get help from the agents, attenuative on... Read More
Robert Avila
November 6, 2024Your site was extremely easy to use, I was able to get my event insured for what the event planners wanted. The price was so affordable. Even chatting... Read More
Rebecca Ruby
November 6, 2024 -
Quick easy sign-up convince is great
Vincent Davanzo
November 6, 2024Great to work with. Always available for assistance.
Two Pour Girls Bartending
November 6, 2024Best customer service I have ever had in regards to insurance.
Edward Findley
November 5, 2024 -
Super easy and convenient. Just renewed, thanks.
Wendy Berg
November 3, 2024Great to work with. Always available for assistance.
Courtney Araneo
November 3, 2024This is only the second year I have had this insurance. Haven't had to use it. But it's nice to know i have it. The price is great too
Vickie Sundgren
November 3, 2024 -
Canopy insurance has been great for my business. Definitely a five star definitely recommend it..
Fernando Ferreira
October 12, 2024Very easy and straight forward experience! The agent and live chat were instrumental in acquiring my policy.
Jacob Smith Jr
October 7, 2024Rey was amazing. So easy! So fast!
Herman Koch
September 30, 2024 -
Always treated well. They take care of my business insurance and I don’t have to worry about anything with insurance canopy in my corner. 10 year customer.
Mark Paquin
September 14, 2024Excellent rates and coverage! Did a lot of homework before going with Insurance Canopy, by far the best bang for the buck 🙂
Alana Wyld
September 14, 2024She is positive and friendly !
Alan Dynin
September 14, 2024 -
Had a great experience obtaining a policy quickly for a solo musical act. After a year, modified my policy to a fully staffed production easily using the chat feature of... Read More
Paul Tolle
September 6, 2024I am a professional mobile DJ. I use Insurance Canopy for a policy to cover my equipment and liability. They are easy to do business and the website makes... Read More
Don Kirby
September 6, 2024Best price I have found! Excited to be a customer
Dustin Price
September 6, 2024
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TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.
Tenisha J.
February 4, 2025 -
Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.
Ed Levitt
February 3, 2025 -
As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More
Kristie Williams
January 30, 2025 -
This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.
Tony Felix
January 23, 2025 -
Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.
John B
January 16, 2025 -
I’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More
jay gedeon
January 6, 2025 -
Super easy to use and great service; I had a little error from my part and needed to correct it customer service was super helpful they guided me through the... Read More
Ana Zavala
January 6, 2025 -
I needed some liability insurance for my business. The team at Insurance Canopy had great recommendations and the insurance was reasonable for the coverage. Web site and process... Read More
Susan Tedesco
January 6, 2025 -
Was waiting for two other insurance companies to get back to me for over 2 1/2 weeks and losing money every day. Sitting here, frustrated I asked ChatGPT what... Read More
Chad Laibly
January 6, 2025 -
Great coverage, excellent price, terrific customer service. I checked out a lot of different carriers and they had the best reputation and coverage. Since most venues require insurance, it was... Read More
Steve Bryant
January 6, 2025
Questions About Surety Bonds
How do I file a claim on a surety bond?
To file a claim, the obligee (the person or organization that hired you) will contact the surety company with details of your non-compliance or breach. The surety company will investigate and determine the claim’s validity.
How do surety bonds make money?
Surety companies charge you a premium for issuing bonds. These premiums are non-refundable and help offset potential claims.
Do surety bond requirements differ by state?
Yes, surety bond requirements vary based on local regulations and industry standards. Check your state’s specific bonding requirements.
What’s the difference between a surety bond and a fidelity bond?
A surety bond guarantees performance or compliance to a third party. A fidelity bond protects a business from losses caused by employee dishonesty or theft.
What are my obligations once the bond is issued?
Once the bond is issued, you are obligated to fulfill the terms of the bond agreement and reimburse the surety for any valid claims paid on your behalf.
