Surety Bonds
Guarantee your obligations, build trust, and meet requirements — online in minutes.
- Meet Legal and Contractual Requirements
- Build Trust with Clients and Partners
- Protect Against Financial Loss from Non-Performance
What Is a Surety Bond?
A surety bond is a three-party agreement designed to guarantee performance, compliance, or financial assurance. It involves three key parties:
- Principal: The person or business required to obtain the bond (you!)
- Obligee: The entity requiring the bond (often a government agency or project owner)
- Surety: The company that issues the bond and guarantees the principal will meet their obligations
Surety bonds build trust, keep you compliant with laws, and protect clients by guaranteeing that you’ll meet your obligations.
Surety bonds are also often required by law. For example:
- Contractors need bonds for government projects
- Auto dealers need license bonds to operate
- Court bonds may be required during legal cases
Requirements vary depending on the industry and location.
License and Permit Bonds
License and permit bonds, also known as commercial bonds, guarantee a business adheres to industry regulations (e.g., a car dealership maintaining proper licensing). They are often required to obtain business licenses, stay compliant with laws, and cover a variety of business types.
Examples:
- Alcohol/liquor
- Auto dealers
- Collection agencies
- Contractors
- Freight brokers
- Fuel tax
- Insurance brokers
- Medicare DMEPOS*
- Money transmitters
- Mortgage brokers
- Public adjusters
- Process servers
- Sales tax
- Title agencies
- Notaries
*Durable Medical Equipment, Prosthetics, Orthotics, and Supplies
Fidelity Bonds
Fidelity bonds protect businesses from financial losses caused by employee dishonesty, property damage, or theft. They help ensure that employees act responsibly and maintain trust within the organization. You might find these listed as:
- Business service bonds
- ERISA* bonds
- Financial institution bonds
*Employee Retirement Income Security Act
Contractor Bonds
Contractor bonds guarantee that contractors fulfill their project obligations, including completing construction on time and paying subcontractors. These bonds are often required to secure work and comply with local regulations, and are available for several different types of construction-related obligations.
Examples:
- Bidding
- Performance
- Payment
- Maintenance
- Supply Bonds
- Service contracts
- Subdivision/aite improvement
- Warranties
How Does a Surety Bond Work?
A surety bond holds you accountable. If you don’t meet the bond’s terms (e.g., completing a project or following regulations), a claim can be made against your bond. The surety company steps in, investigates, and pays the obligee if the claim is valid. You’re then responsible for repaying the surety company for any amount they covered.
Surety Bonds vs. Insurance
While they may seem similar, surety bonds and insurance serve different purposes. Surety bonds guarantee your performance or compliance to protect the obligee, while small business insurance protects you against third-party liabilities or losses.
Who Needs Surety Bonds?
A wide range of industries and professionals benefit from surety bonds, including:
- Contractors and construction professionals
- Auto dealers
- Notaries
- Cleaning and janitorial services
- Freight brokers — and many more
How Much Do Surety Bonds Cost?
Surety bonds typically range from 1% to 15% of the bond amount. If your bond is for $10,000, the cost could range from $100 to $1,500 annually. The cost of a surety bond depends on:
- The bond amount required
- Your credit history and financial strength
- The type of bond
How to Apply for a Surety Bond
Simplify bonding with Insurance Canopy by following these steps:
- Pick your bond: Find the right surety bond for your business or project.
- Complete your application: Provide the required info in just minutes.
- Secure your bond: Make your payment and receive your bond confirmation fast!
Why Small Businesses Love Insurance Canopy
With Insurance Canopy, you don’t have to choose between affordability and quality coverage. Instead, you get the best of both worlds: A+ rated insurance for a competitively low price. See what else our customers have to say about us!
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Thank you so much
Steve Monreal
July 11, 2025I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie Calaway
July 4, 2025Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert Earnest
July 4, 2025 -
I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje Angell
June 18, 2025What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025 -
Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael Riley
June 18, 2025Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony Burgess
June 18, 2025 -
Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025Very easy to renew policy
Elyce Nissinoff
June 18, 2025They can help.you with the right Insurance you need, and the lowest price
Alvaro Baltazar
May 18, 2025 -
Provides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.
David Fox
May 18, 2025Affordable for dance & yoga folk. Thumbs up!
Maia Claire
May 18, 2025Extremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!
Ishan Arvin
May 18, 2025 -
everything is excellent
Radames Martinez
May 18, 2025I'm a new customer/policy holder. Super easy online application and policy setup. Very competitive rates. Certificate of insurance generated and received (PDF) immediately once method of payment established. Great service... Read More
Matthew Terry
April 18, 2025For me, this application process was super efficient and easy to navigate on line. That goes a long way!
Holly Mulder
April 18, 2025 -
Affordable. Thank you.
Ana Young
April 18, 2025I have not had any issues over the years with Insurance Canopy, with canceling and renewing, I have found the cost of coverage in line or better then some. I have... Read More
John Corkins
March 18, 2025Canopy insurance has covered my DJ business for several years and I am totally satisfied with their services. Thank you DjVic🎧
DjVic Universal Sounds
March 18, 2025 -
I have them for 3 years this year seems price went up . I have never had to use them for a claim so really couldn’t tell you about that!
Denice Lapointe
February 18, 2025Great for Event Insurance - most affordable
Gaby Nobrega
February 18, 2025I was feeling overwhelmed with the specifications needed for my insurance coverage. I was offered friendly, quick and clear assistance. Through Canopy and Rey's help I was able to obtain... Read More
ESPIE QUINTERO
February 18, 2025 -
TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.
Tenisha J.
February 4, 2025Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.
Ed Levitt
February 3, 2025As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More
Kristie Williams
January 30, 2025 -
This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.
Tony Felix
January 23, 2025Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.
John B
January 16, 2025I’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More
jay gedeon
January 6, 2025
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Thank you so much
July 11, 2025 -
Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert Earnest
July 4, 2025 -
I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
July 4, 2025 -
I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025 -
great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje Angell
June 18, 2025 -
Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025 -
What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025 -
Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025 -
Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael Riley
June 18, 2025 -
Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony Burgess
June 18, 2025
Questions About Surety Bonds
How do I file a claim on a surety bond?
To file a claim, the obligee (the person or organization that hired you) will contact the surety company with details of your non-compliance or breach. The surety company will investigate and determine the claim’s validity.
How do surety bonds make money?
Surety companies charge you a premium for issuing bonds. These premiums are non-refundable and help offset potential claims.
Do surety bond requirements differ by state?
Yes, surety bond requirements vary based on local regulations and industry standards. Check your state’s specific bonding requirements.
What’s the difference between a surety bond and a fidelity bond?
A surety bond guarantees performance or compliance to a third party. A fidelity bond protects a business from losses caused by employee dishonesty or theft.
What are my obligations once the bond is issued?
Once the bond is issued, you are obligated to fulfill the terms of the bond agreement and reimburse the surety for any valid claims paid on your behalf.
Surety Bonds Insurance We Cover
Katie Navarro | Director of Agency Growth at Propeller Bonds
Katie Navarro is the Director of Agency Growth at Propeller Bonds. She is a seasoned Surety Professional who helps agents and clients streamline the bonding process with Propeller's automated platform. She has her Texas General Lines P&C and L&H License.
Specializing in construction, real estate, and service industries, Katie empowers businesses with expert guidance and efficient bond solutions at Propeller Bonds.
Katie Navarro is the Director of Agency Growth at Propeller Bonds. She is a seasoned Surety Professional who helps agents and clients streamline the bonding process with Propeller's automated platform. She has her Texas General Lines P&C and L&H License.
Specializing in construction, real estate, and service industries, Katie empowers businesses with expert guidance and efficient bond solutions at Propeller Bonds.
