How to Get a Surety Bond

Lance approves over 99% of license-bond applicants instantly through its online application. New to the process? Our how to get bonded guide walks through it in more detail.

Go Through Underwriting

Underwriting is how the surety measures the risk of backing you. It's the step that determines both whether you're approved and what you'll pay.

What the surety evaluates:

• Personal credit score: the single biggest factor, especially for license bonds.
• Business and personal financials: assets, liquidity, and statements for larger bonds.
• Industry experience and history: relevant for contract and court bonds.
• Any red flags: open bankruptcies or unpaid judgments can affect approval and rate.

For small license and permit bonds, underwriting is often near-instant and based mainly on credit. For larger contract or court bonds, the surety reviews everything more thoroughly to confirm the obligation is realistic and properly backed.

Review Your Quote, Sign and Pay the Premium

Once approved, you'll receive your premium, a percentage of the total bond amount, not the full sum. A $10,000 bond doesn't cost $10,000; it might cost $100–$1,000 a year depending on your credit and the bond's risk.

Before the bond is issued, you'll:

• Sign an indemnity agreement: your promise to repay the surety for any valid claim it pays on your behalf.
• Pay the annual premium: in surety, premium is standardly paid upfront for a full year of coverage.

Receive Your Issued Bond

After your payment and signed agreement are clear, the surety issues the bond. For most online license-bond applications this happens the same day or within one to two business days.

You'll typically receive:

• The original bond document, often with a raised seal for obligees that require it.
• A power of attorney from the surety authorizing the bond.
• A bond certificate in some cases, as proof of compliance.

Check the delivery format your obligee accepts: some now take digital bonds, while others still require the physical original.

Sign and File the Bond With Your Obligee

The bond isn't active for compliance purposes until it's filed correctly. In most cases you, the principal, must sign the original bond before it goes to the obligee, which is exactly why bonds should never be sent directly from the surety to the obligee.

To finish:

• Sign the original where indicated.
• File it with the obligee, the state agency, court, or project owner by their required method.
• Confirm receipt and keep proof of filing for your records.

Once filed and accepted, your license, project, or court matter can move forward.

First-time Buyer Questions

How do I get a surety bond?

Identify the bond type and amount your obligee requires, apply with a licensed surety agency, complete underwriting, pay your premium, and file the signed bond with your obligee. With an online agency, most license bonds are approved in minutes and issued within one to two business days.

How much does a surety bond cost?

You pay a premium, a percentage of the bond amount, not the full amount. Strong-credit applicants often pay 1%–3%; higher-risk applicants typically pay 5%–10%. A $10,000 bond can cost as little as $100/year for qualified applicants.

How long does it take to get a surety bond?

Most license and permit bonds are approved instantly online and issued one to two business days after payment and a signed agreement. Larger contract and court bonds can take longer.

Can I get a surety bond with bad credit?

Yes. Lance Surety's Bad Credit Surety Bonds program approves applicants with low scores, tax liens, bankruptcies, or civil judgments, with premiums generally in the 5%–10% range.

What do I need to apply?

For most license bonds: basic business and personal information plus consent to a credit check. Larger contract or court bonds may also require financial statements, project details, or references.

What's the difference between a surety bond and insurance?

Insurance protects you, the policyholder. A surety bond protects the obligee and the public from your conduct and if a valid claim is paid, you reimburse the surety.