Surety Bonds

How Much Bond Coverage Do I Need?

Bond amounts are set by whoever requires the bond — your state licensing board sets license bond amounts; project contracts specify performance/payment bond amounts (typically 100% of contract value).

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How do I know what bond amount is required for my contractor’s license or project?

For license bonds: look up your specific state licensing board’s requirements. Bond amounts vary by state and license type — typically $5,000–$50,000. You don’t choose the amount; the licensing board dictates it.

For performance and payment bonds: the contract specifications will state the required bond amount. On most public projects, both bonds equal 100% of the contract value. A $750,000 contract requires $750,000 performance and $750,000 payment bonds.

For bid bonds: the bid documents specify the required bid bond amount — typically 5–10% of your bid. The surety issues the bid bond in the required amount based on your actual bid figure.

Need a surety bond fast?

Trade Safe helps contractors get bonded same-day in most cases. We work with multiple surety markets to find the best rate for your situation.

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