Surety Bonds 2026: Types, Costs & How to Get Bonded
Surety Bonds 2026: Types, Costs & How to Get Bonded Surety bonds guarantee that you'll fulfill your obligations — whether you're a contractor, a business owner, or a court appointee. This guide explains types, costs, and how to get bonded. What Is a Surety Bond? A three-party agreement: Principal: You (the business/person who needs the bond). Obligee: The party requiring the bond (government, client, court). Surety: The insurance company that guarantees your performance. How it works: If you fail to meet obligations, the surety pays the obligee — then you must repay the surety. Not insurance: Insurance protects YOU. A bond protects the OBLIGEE (and you repay the surety). Types of Surety Bonds Contract Bonds: Bid Bond: Guarantees you'll accept the contract if you win the bid. Performance Bond: Guarantees you'll complete the project. Payment Bond: Guarantees you'll pay subcontractors/suppliers. Maintenance Bond: Guarantees work quality for a period ...