The Best Surety Bond Insurance in Missouri

A surety bond is a three-party contract between the principal (your business), the obligee (the party requiring the bond), and the surety (the insurance company). It guarantees you will fulfill a specific obligation. If you fail to perform, the surety pays the claim and you must repay the surety.

General contractors, subcontractors, auto dealers, freight brokers, mortgage brokers, notaries, collection agencies, and many licensed professionals. Most states require surety bonds for contractor licensing, and federal projects over $150,000 require performance and payment bonds.

Surety bond premiums typically range from 1% to 15% of the bond amount, depending on the bond type, your credit score, financial strength, and industry experience. A $25,000 contractor license bond might cost $250 to $1,250 per year.

The main types are contract bonds (bid, performance, payment), commercial bonds (license and permit, court, public official), and fidelity bonds (employee dishonesty). Contractors most commonly need contract bonds and license bonds.

Apply through a surety bond producer or insurance agent. The surety evaluates your credit score, financial statements, industry experience, and the bond amount. Strong credit and financials get the best rates. Most bonds can be issued within 1-3 business days.