Surety Bonds for contractors
A bond is not insurance — it's a three-party guarantee. This course explains the difference, when bonds are required, and how license, performance, and payment bonds work.
What it covers
- License bonds — required by state licensing boards
- Performance bonds — guarantees project completion
- Payment bonds — guarantees payment to subs and suppliers
- Bid bonds — guarantees you'll honor a bid if selected
- Court bonds — required for legal proceedings
- Maintenance bonds — warranty of completed work
Who it’s for
- Contractors required by state law to carry a license bond
- Contractors bidding on public works projects
- Subcontractors required to provide performance bonds by GCs
- Contractors working on federally funded projects (Miller Act)
Why CCA
- License bonds issued same-day for most states
- Performance and payment bonds through surety markets
- Bond limits matched to project and licensing requirements
- Explanation of bond obligations before you sign
Common questions about surety bonds
Insurance pays you when a covered loss occurs. A surety bond pays the obligee (client or licensing board) if you fail to perform — and then the surety seeks reimbursement from you. Bonds are a form of credit, not protection.
License bonds are typically 1–3% of the bond amount per year. A $10,000 license bond might cost $100–$300/year. Contractors with poor credit may pay more.
Not always. Performance bonds are most commonly required on public works contracts, federally funded projects (Miller Act requirements), and larger commercial projects where the owner wants additional protection.
Yes. NPN #8608479, licensed to write and service contractor insurance programs in every state.
Once coverage is bound, we typically issue certificates within minutes. Same-day certs are standard.
We shop A.M. Best A-rated and A+ rated specialty contractor markets — not personal lines carriers or surplus lines scraps.
We have markets that write contractors with claims history. We'll need 3–5 years of loss runs to structure the right program.
We shop multiple markets and often match or beat current pricing — especially if you haven't been marketed recently. Send us your current dec page.
We assist with claims reporting and advocacy. Contact us immediately after a loss and we'll guide you through the process.
Basic business info: trade type, years in business, annual revenue or payroll, number of employees, states you work in, and 3–5 years of loss runs if available.
Yes. We can bundle GL, commercial auto, tools, and inland marine into a commercial package that simplifies billing and can reduce total premium.
Yes. Additional insured endorsements, waivers of subrogation, and primary/non-contributory language are standard and typically issued same-day.
Minimums vary by carrier and coverage line. GL minimums typically start around $500–$750 for the smallest contractors. We'll tell you upfront.
We'll reach out 60–90 days before your renewal to review your program, re-shop markets if needed, and ensure your limits still match your contracts.
A BOR letter transfers your existing policy to Contractors Choice Agency so we can service it and compete for your renewal. It doesn't change your coverage or premium mid-term.
Yes. We place license bonds, performance bonds, payment bonds, and bid bonds alongside your insurance program.
California, New York, and New Jersey typically have the strictest licensing and insurance requirements. Florida has specific requirements for roofing and storm work. We know all of them.
Pair it with related coverage
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