Surety bond costs are primarily determined by the value of the bond. Your industry risk and credit rating can also affect the premium.
Regardless of the bond amount, the median premium for a surety bond is $100 annually ($8 per month) among Insureon's small business customers. The median cost is a better estimate of what your business might pay than the average cost as it eliminates high and low outliers.
Most small business owners (55%) pay between $100 and $200 per year for a surety bond and 16% pay less than $100 per year. These figures were derived from an analysis of bonds purchased by Insureon small business customers.
Insureon’s analysis of surety bond costs shows that a business’s industry can have an impact on premium costs. High-risk businesses, such as construction companies, may have to pay a higher percentage of the bond amount (for example, 10% or more) as a premium. A low-risk business could pay as little as 1% of the bond's value.
For example, view the cost of surety bonds for cleaning businesses.
If you want car insurance that pays for a wide range of damage, you have to pay more for it. The same rule applies to business insurance: If you want a policy with higher coverage limits, expect to pay more than you would for basic coverage.
The median generic limit for a surety bond is $10,000 for Insureon small business customers.
Insurance premiums vary based on the policies a business buys. See our small business insurance cost overview or explore costs for a specific policy.