The Bond Industry's Best Free Resource

Stop Paying Someone to Introduce You

Your bond Premium The annual cost you pay for a surety bond, typically 1–15% of the total bond amount. Your rate depends on credit score, financials, and bond type. goes through a chain of middlemen before it reaches the company that actually backs your bond A three-party agreement where a surety company guarantees to an obligee that a principal will fulfill their obligations. If the principal fails, the surety pays the claim and seeks reimbursement from the principal. . We are here to show you exactly how that works — and what you can do about it.

The Broker Problem How It Works
$20B +

U.S. surety bond market size

40 %

Typical broker commission rate

1-10 %

What premiums actually cost

30 +

Terms in our free glossary

$2.8B

Estimated annual broker fees in the U.S. surety market

That is money contractors pay for introductions, not for bond coverage.

Performance Bonds Bid Bonds License & Permit Bonds Payment Bonds Permit Bonds Court Bonds Customs Bonds Fidelity Bonds Performance Bonds Bid Bonds License & Permit Bonds Payment Bonds Permit Bonds Court Bonds Customs Bonds Fidelity Bonds
The Problem

The Bond Industry Has a Middleman Problem

Most people buy surety bonds through brokers The percentage of your premium that goes to the bond broker or agent, typically 20–30%. This is built into your rate — you're already paying it. who add cost without adding value. Here is what they do not want you to know.

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Commissions Are Built In

Your Premium The annual cost you pay for a surety bond, typically 1–15% of the total bond amount. Your rate depends on credit score, financials, and bond type. already includes a broker commission of 20-40%. You do not pay extra — but you also never see it broken out. The broker The percentage of your premium that goes to the bond broker or agent, typically 20–30%. This is built into your rate — you're already paying it. gets paid whether they did five minutes of work or five hours.
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Information Is Gatekept

Brokers benefit when you do not understand the bonding process. The less you know, the more you depend on them. That is not a partnership — it is a business model built on confusion.
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The Process Is Simpler Than They Say

Getting a surety bond A three-party agreement where a surety company guarantees to an obligee that a principal will fulfill their obligations. If the principal fails, the surety pays the claim and seeks reimbursement from the principal. is not complicated. You fill out an application, an underwriter The process a surety uses to evaluate your risk — reviewing credit, financials, experience, and work history to determine your premium rate. reviews your credit and financials, and you get a rate. A broker just stands between you and that process.
Follow the Money

Where Your Premium Actually Goes

When you pay a bond premium through a broker, here is a typical breakdown of where that money ends up.

45% Surety
30% Broker
15% Sub-Agent
10% Fees
Surety Company

$2,250

on a $5,000 premium

Broker Commission

$1,500

on a $5,000 premium

Subagent Cut

$750

on a $5,000 premium

Processing Fees

$500

on a $5,000 premium

Explore

Bond Types Explained

Every bond type has its own rules, costs, and quirks. We break each one down in plain English.

Performance Bonds

Guarantees you'll finish the job — or the surety will make it right.

Bid Bonds

Proves you're serious about your bid — and can back it up.

License & Permit Bonds

The bond your state requires before you can legally operate.

Payment Bonds

Ensures subs and suppliers get paid — even if the GC doesn't.

Permit Bonds

Required before a government agency issues a permit for regulated activity.

Court Bonds

Required by courts to protect parties in legal proceedings.

Customs Bonds

Required by CBP for businesses importing goods into the United States.

Fidelity Bonds

Protects your business from employee theft, fraud, and dishonesty.
By State

State-by-state bond guides

See all 50 states →

50 states covered with statute-cited bond amounts, filing process, and a plain-English read on whether a bond is actually required.

Alabama

3 bond types

Alaska

3 bond types

Arizona

3 bond types

Arkansas

3 bond types

California

3 bond types

Colorado

3 bond types

Connecticut

3 bond types

Delaware

3 bond types

Florida

3 bond types

Georgia

3 bond types

Hawaii

3 bond types

Idaho

3 bond types

Illinois

3 bond types

Indiana

3 bond types

Iowa

3 bond types

Kansas

3 bond types

Kentucky

3 bond types

Louisiana

3 bond types

Maine

3 bond types

Maryland

3 bond types

Massachusetts

3 bond types

Michigan

3 bond types

Minnesota

3 bond types

Mississippi

3 bond types

Missouri

3 bond types

Montana

3 bond types

Nebraska

3 bond types

Nevada

3 bond types

New Hampshire

3 bond types

New Jersey

3 bond types

New Mexico

3 bond types

New York

3 bond types

North Carolina

3 bond types

North Dakota

3 bond types

Ohio

3 bond types

Oklahoma

3 bond types

Oregon

3 bond types

Pennsylvania

3 bond types

Rhode Island

3 bond types

South Carolina

3 bond types

South Dakota

3 bond types

Tennessee

3 bond types

Texas

3 bond types

Utah

3 bond types

Vermont

3 bond types

Virginia

3 bond types

Washington

3 bond types

West Virginia

3 bond types

Wisconsin

3 bond types

Wyoming

3 bond types
The Process

How Bonding Actually Works

The bonding process is not a mystery. Here are the three core steps — no broker required.

Someone Requires a Bond

Step 1
A government agency, project owner, or court says you need a surety bond A three-party agreement where a surety company guarantees to an obligee that a principal will fulfill their obligations. If the principal fails, the surety pays the claim and seeks reimbursement from the principal. before you can get a license, win a contract, or proceed with a legal matter. They are the Obligee The party that requires the bond — typically a government agency, project owner, or regulatory body that needs financial protection. .

You Apply with a Surety

Step 2
You fill out an application with a surety company The insurance company or surety company that issues the bond and guarantees payment to the obligee if the principal defaults. . They review your credit, finances, and experience through a process called Underwriting The process a surety uses to evaluate your risk — reviewing credit, financials, experience, and work history to determine your premium rate. . This determines your approval and Premium The annual cost you pay for a surety bond, typically 1–15% of the total bond amount. Your rate depends on credit score, financials, and bond type. rate.

You Get Bonded

Step 3
If approved, you pay your premium and sign an Indemnity Agreement A legal contract where the principal (and often their spouse or business partners) agrees to repay the surety for any claims paid out on the bond. . The surety issues your bond. You are now the Principal The person or business that purchases the surety bond and is required to fulfill the obligation it guarantees. — the party the bond guarantees.
When your broker buys you a steak dinner, remember — you already paid for it. It came out of your premium.

— The NoBro Bonds Perspective

Resources

Learn on Your Own Terms

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Surety Bond Glossary

30+ terms defined in plain English. No jargon walls, no email gates.

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Where Your Premium Goes

Interactive breakdown showing exactly who gets what from your bond premium.

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How Bonding Works

The complete guide to surety bonds — what they are, how to get one, and what to watch out for.

Knowledge is the first step

You do not need a broker to understand your bond. Start with the type you need.

Explore Bond Types

8

Bond type guides

30+

Glossary terms

3

Interactive tools

$0

Cost to you