It depends on the bond, not just you
There is no single surety bond amount. The number you need is set by the type of bond and who requires it. A license bond is a fixed statutory figure, a contract bond scales with the job, and a permit or court bond is whatever the obligee says it is. The good news is the same for all of them: you pay a premium, a small percentage of the bond amount, not the full amount itself.
License bonds: a fixed amount
The California contractor license bond is the simplest case. It is a fixed $25,000 for every licensee, set by statute (BPC §7071.6). You do not size it, and it does not change with your revenue or the jobs you take. What changes is your premium, typically 1% to 15% of the $25,000, driven mostly by credit. See the full contractor license bond page for details.
Contract bonds: a share of the contract
Contract bonds are sized off the project, so the amount grows with the work:
- Bid bond. Usually about 5% to 10% of your bid amount, guaranteeing you will honor the bid if you win.
- Performance bond. Typically written up to 100% of the contract price, guaranteeing the work is completed.
- Payment bond. Also commonly up to 100% of the contract, guaranteeing your subs and suppliers get paid.
Because these track the contract, a bigger job means a bigger bond, which is why sureties look at your financials and track record. The contract bonds page walks through how they work.
Permit, court, and commercial bonds: set by the obligee
For permit, court, and most commercial bonds, you do not pick the amount at all. The obligee, the city, county, state agency, or court that requires the bond, sets it. A permit bond amount usually comes from the agency's cost estimate; a court or license bond amount comes from a statute or the court's order. Your job is simply to post the amount they specify, and ours is to place it quickly on the exact form they accept.
Estimate your premium
Once you know the bond amount, you can estimate what you would actually pay. The tool below estimates the annual premium, not a quote, so treat it as general guidance. Your real rate comes from underwriting, and minimum premiums may apply.
The face amount the obligee requires.
For a $25,000 bond with good credit. You pay this premium, not the $25,000.
Estimate only. Your real rate comes from underwriting, and minimum premiums may apply.
Want an exact number for your bond? Start a quote, or open the full cost calculator.