Surety bonds for contractors
Bond costs are a percentage of the bond amount, so the price is driven by the amount required and by your financial strength rather than by your trade.
Roofing, excavation and anything at height price far higher than interior finish work. The single largest factor.
Workers compensation is priced per hundred dollars of payroll, so it scales directly with headcount and wages.
General liability is priced on revenue, so two contractors with the same headcount can pay very different amounts.
Every state has its own rates and rules. Working across a state line means reporting payroll there.
Claims and injuries follow you for years through your experience modification rate.
How much you sub out, and whether those subcontractors genuinely carry their own coverage, changes your exposure materially.
Bond pricing reflects the surety's assessment of whether it will have to pay and whether it can recover. Strong financials and a history of completed bonded work produce lower rates. Thin working capital, no bonded history and poor credit produce higher rates, larger collateral requirements, or a refusal. This is the opposite of how liability insurance prices, where your loss history dominates. A contractor can have a spotless claims record and still pay a high rate for a bond, because the bond is priced on the balance sheet.
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Tell us your trade, payroll and the states you work in. A licensed specialist will come back with real numbers.
