Commercial Lines

Surety & Performance Bonds

Bid, performance, and payment bonds that guarantee your obligations — and open doors to contracts that require bonded contractors.

Overview

What Is Surety & Performance Bonds?

A surety bond is a three-party agreement in which an insurance company (the surety) guarantees to a project owner (the obligee) that a contractor or business (the principal) will fulfill their contractual obligations. Unlike insurance, a surety bond protects the project owner — not the contractor — but being bonded is often a legal or contractual requirement to bid on public and private projects. Diaz Risk Advisors helps contractors and businesses get bonded quickly and at competitive rates.

Why It Matters

Many public projects — and an increasing number of private ones — require contractors to be bonded before they can even submit a bid. Without a surety bond, you're locked out of a significant portion of the market. Beyond compliance, being bonded signals to clients that you're financially stable, reputable, and committed to completing what you start.

What's Covered

  • Bid bonds — guarantee you can perform if awarded the contract
  • Performance bonds — guarantee project completion per contract terms
  • Payment bonds — guarantee subcontractors and suppliers are paid
  • License and permit bonds — required by state or local government
  • Court bonds (judicial bonds)
  • Fidelity bonds — protect against employee dishonesty
  • Commercial bonds for businesses and service providers

Is This Right for You?

Who Needs Surety & Performance Bonds?

General contractors bidding on public or government projects

Subcontractors required to be bonded by a general contractor

Construction companies working on federally funded projects

Businesses required to carry a license or permit bond

Service companies handling client funds or property

Any contractor looking to expand into bonded project work

Common Questions

Frequently Asked Questions

What is the difference between a surety bond and insurance?

Insurance protects you (the policyholder) from losses. A surety bond protects the project owner or obligee — if you fail to perform, the surety pays the claim and then seeks reimbursement from you. Bonds are a financial guarantee, not a transfer of risk.

How much does a surety bond cost?

Bond premiums are typically 1–3% of the bond amount for contractors with good credit and financials. The exact rate depends on the bond type, bond amount, your credit history, and your business financials. We shop multiple surety markets to find the best rate.

How quickly can I get bonded?

Many smaller bonds (license/permit bonds and smaller contract bonds) can be issued same-day or within 24–48 hours. Larger performance and payment bonds may require financial review but we work to turn them around as quickly as possible.

Do I need good credit to get a surety bond?

Credit is a factor, but it's not the only one. Sureties also look at your business financials, experience, and the size of the bond. We work with multiple surety markets, including those that specialize in contractors with less-than-perfect credit.

Ready to Get Covered?

As an independent agency, we shop multiple carriers to find you the best rate. No obligation — just honest advice.

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