What does a surety bond cost?

Premiums usually run 1 to 10 percent of the bond amount. The percentage reflects how risky the surety considers the applicant, judged on personal credit, business and personal financials and industry experience. On a $25,000 bond, a 1.5 percent rate is $375 and a 5 percent rate is $1,250. Contractor bonds for public jobs are priced against the full contract amount instead.

Why does the bond amount matter as much as the rate?

Because the premium is a percentage of the bond amount the obligee requires. A freight broker must carry a $75,000 bond, while a contractor license bond required by a local municipality is often around $10,000, so the same rate produces very different premiums.

What happens if a claim is filed on the bond?

The surety company pays the claim first, and the bonded principal is responsible for reimbursing it under the indemnity agreement. JW Surety Bonds assigns claim specialists to work the file, and publishes guidance on handling a false claim and on avoiding claims in the first place.

Surety

JW Surety Bonds

JW Surety Bonds is a surety bond and small business insurance producer in Pipersville, Pennsylvania, writing bonds in all 50 states. It covers license and permit bonds, contractor bonds, court and fidelity bonds, and commercial insurance lines including general liability, professional liability and business owner's policies.

Applications run through an online quote engine that returns a price in minutes on a soft credit pull, with an agent assigned to work the file and claim specialists if a claim is later filed. The agency offers a money-back guarantee: if the policy is not accepted it refunds the payment, including any shipping cost. It publishes bond guides, a bond cost calculator and an FAQ library covering obligees, indemnity agreements and claims, and it works with other insurance brokers through a partner-broker network.

The agency was established in 2003 by two people and has grown past 50 employees. It says it writes over $4 billion in bonds and insurance a year, calls itself the largest volume bond and insurance producer in the country, and reports having serviced 40,747 clients and a 5.0 rating across 1,572 reviews shown on its site. The office is at 6023A Kellers Church Road, Pipersville, Pennsylvania, open weekdays 9:00am to 5:00pm Eastern.

Premiums depend on credit, financials and industry experience, so the only reliable figure is a quote on your own file. Check the bond amount your obligee requires before comparing rates: a freight broker bond is written against a fixed $75,000 amount, while a municipal contractor license bond may be a tenth of that.

Best for

Contractors, dealers, freight brokers and small businesses that need a bonded license quickly and want an online quote, including applicants worried about credit. Not aimed at large contract surety programs that need a local underwriting relationship.

What they do

License and permit bonds
Contractor license bonds
Court bonds
Fidelity and business service bonds
Freight broker BMC-84 bonds
Auto and motor vehicle dealer bonds
Mortgage broker and money transmitter bonds
General liability insurance
Professional liability and E&O insurance
Business owner's policy (BOP)

Details

Attribute	Value
Founded	2003
Team size	51-200 employees
How they charge	Bond premiums typically run 1% to 10% of the bond amount, set by credit, financials and industry experience; contractor bonds on public jobs price off the full contract amount.

What stands out

Established in 2003 with two people and has grown to more than 50 employees.
Says it writes over $4 billion in bonds and insurance each year.
Reports having serviced 40,747 clients.
Shows a 5.0 rating across 1,572 customer reviews on its own site.

Common questions

What does a surety bond cost?: Premiums usually run 1 to 10 percent of the bond amount. The percentage reflects how risky the surety considers the applicant, judged on personal credit, business and personal financials and industry experience. On a $25,000 bond, a 1.5 percent rate is $375 and a 5 percent rate is $1,250. Contractor bonds for public jobs are priced against the full contract amount instead.
Why does the bond amount matter as much as the rate?: Because the premium is a percentage of the bond amount the obligee requires. A freight broker must carry a $75,000 bond, while a contractor license bond required by a local municipality is often around $10,000, so the same rate produces very different premiums.
What happens if a claim is filed on the bond?: The surety company pays the claim first, and the bonded principal is responsible for reimbursing it under the indemnity agreement. JW Surety Bonds assigns claim specialists to work the file, and publishes guidance on handling a false claim and on avoiding claims in the first place.