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We serve clients across Florida and work with multiple insurance carriers to help individuals, families, and business owners compare coverage options that fit their state and industry requirements.
We serve clients across Florida and work with multiple insurance carriers to help individuals, families, and business owners compare coverage options that fit their state and industry requirements.
a week ago
Excellent service and very professional staff. They made the process easy, answered all my questions, and helped me find the right coverage. Highly recommended!
4 months ago
Communication is great and process made sinple. Very educated and professional.
a week ago
Great attention to detail with exceptional service, thanks for your help 👍 definitely will recommend your services to friends and family.
a month ago
Ray & His Team have been beyond helpful these past years and continuing! Easy to communicate with, guidance throughout the process big or small company, he’s got you covered!
3 months ago
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Surety bonds in Florida are written promises that you will do what a license, permit or contract requires of you. Counties, cities, state agencies and project owners ask for them from contractors, auto dealers, notaries and other businesses. Covered by Guzman helps Florida business owners figure out which bond they are being asked for, prepare the application and request a quote.
Call or text 813-302-7151, 7 days a week from 8am to 9pm, or send a request anytime. We review what you send and follow up, typically within one business day. The surety company decides approval and price after underwriting.
What a surety bond is
A surety bond is an agreement between three parties. The principal is you, the business or person who has to meet an obligation. The obligee is the party that requires the bond, such as a county licensing office, a state agency or the owner of a construction project. The surety is the company that issues the bond and backs your promise to the obligee.
The obligation depends on the bond. It can mean following the rules that come with a license, finishing a contract, or paying your subcontractors and suppliers. If you don’t meet it, the obligee can make a claim on the bond. When the surety pays a claim, you have to pay the surety back.
Take a license bond as an example. A county requires the bond before it issues a local contractor license. If the contractor breaks the rules that come with that license, the protected party can file a claim on the bond, and the surety reviews it. Any amount the surety pays comes back to the contractor as a debt.
How a surety bond is different from insurance
Insurance protects you, the policyholder. A surety bond protects the obligee, which can be your customer, a government agency or the public. The bond promises them that you will do the work or make the payments you agreed to. It doesn’t pay for your own losses or defend you in a lawsuit.
Repayment is the other big difference. On an insurance policy, a paid claim is the insurance company’s cost. On a bond, the surety expects the principal to repay it. That is why sureties review the owner’s credit, and on larger bonds the business’s finances, before they approve anything.
Many businesses carry both. A contractor might hold a license bond for the county and a general liability insurance policy for injuries and property damage on the job.
Common Florida bonds we help with
These are some of the most common bond types for Florida businesses:
- License and permit bonds, which many Florida counties and cities require before they issue a local contractor license or certain permits. Each local government sets the amount.
- Performance and payment bonds, which back a contractor’s promise to finish the project and to pay subcontractors and suppliers. On public construction they are usually required together.
- Notary bonds. Florida requires a $7,500 bond to become a notary public under s. 117.01, Florida Statutes.
- Motor vehicle dealer bonds. A Florida license to sell new or used vehicles calls for a $25,000 bond or a letter of credit under s. 320.27, Florida Statutes. Our guide on how to get a Florida car dealer license covers the rest of the application.
- Fidelity bonds, sometimes called janitorial bonds, which protect your clients if one of your employees steals from them. They are common for cleaning companies.
If a bond you were asked for isn’t on this list, send us the requirement anyway and we will look at it with you.
Contractor license bonds in Florida
Many Florida counties and cities require a bond for a local contractor license or for certain permits. Each local government decides whether it applies to your trade and how large the bond must be. If you work in more than one county or city, you may need to meet more than one set of rules.
Ask the licensing office in each place where you plan to work what it requires. Then send us the bond form or the written requirement. We help you apply for the exact bond type and amount on it, so the paperwork matches what the licensing office asked for.
Bonds for public construction projects in Florida
Under s. 255.05, Florida Statutes, many public construction contracts in Florida require performance and payment bonds. On state projects, contracts of $100,000 or less don’t need them. On county, city and other local government projects, the entity that awards the contract may waive the bonds for contracts of $200,000 or less.
Federal work has its own rule. Under the Miller Act, as applied in Federal Acquisition Regulation section 28.102-1, federal construction contracts over $150,000 require bonds. In every case, read the bid documents or the contract before you bid. The exact requirement, including the bond amounts, is written there.
How surety bond pricing works
You don’t pay the full amount of the bond. You pay a premium, which is usually a percentage of the bond amount. A $10,000 license bond costs much less than $10,000, and a larger contract bond is priced the same way, as a share of its amount. Confirm the exact bond amount with the obligee before you apply, since the premium is figured from it.
Small license and permit bonds are often approved with basic information. Contract bonds, like performance and payment bonds, take more documents and a closer review. Either way, the surety company sets the final premium after underwriting, and we tell you what it is before you decide.
What affects the price of a bond
The percentage a surety charges usually depends on:
- The type of bond and the bond amount
- The owner’s personal credit
- How long the business has operated and its experience with similar work
- For contract bonds, the business’s financial statements
As our Florida commercial insurance cost guide explains, on surety bonds the owner’s credit tier sets the rate outright. We can’t give you a number until the surety reviews your application, but we can tell you what the surety will look at.
What the surety asks for
The surety needs enough information to judge whether you will meet the obligation. Have these ready:
- The business name and the names of the owners
- The exact bond type and amount, as stated by whoever requires the bond
- The name of the obligee, meaning the agency or company asking for the bond
- Permission to check credit, which many sureties ask for
- For contract bonds, your financial statements, your experience on similar projects and a copy of the contract
The letter, application or bid document that asks for the bond helps the most. It shows the wording and the amount the obligee expects, which keeps the bond from being issued for the wrong thing.
New contractors and credit problems
A newer business or an owner with credit problems can still apply. Small license and permit bonds are often approved on basic information, though weaker credit may mean a higher percentage. Contract bonds are harder to get early on, because the surety also weighs financial statements and your record on similar jobs. A first bid on a bonded project usually takes more paperwork than a license bond.
Keeping your financial records current and building a history of finished projects gives a surety more to review when you apply for larger bonds later. The surety company decides approval and price, and some applications are declined. If that happens, we tell you what the surety said and which documents, if any, could help on a new application.
Bonds and insurance usually go together
Whoever asks for a bond often asks for insurance too. A county, a general contractor or a project owner may want proof of general liability, workers’ compensation or commercial auto insurance before you start. Getting the bond and the policies ready at the same time helps you avoid delays at the start of a job.
Once a policy is in force, we usually send certificates of insurance within one business day. Our guide on certificates of insurance and contract requirements explains what general contractors and project owners tend to ask for. On new construction, also check whether the contract calls for builders risk insurance on the building while it goes up.
How getting a bond works
- Send the requirement. Call, text or use the form. Tell us the bond type and amount, and send the letter, application or contract that asks for it.
- We prepare the application. We gather the owner and business details the surety needs, including credit permission and, for contract bonds, financial statements, and submit it to the sureties available to us.
- The surety decides, and you get the bond. After approval and payment of the premium, the surety issues the bond so it can go to the agency or company that asked for it.
There is no fee to the client for a quote. The surety company pays our agency’s commission. Phone and text hours are 7 days a week, 8am to 9pm, and you can send the form anytime.
Areas we serve
We help businesses throughout Florida from our office in Zephyrhills, and most of our clients are in Tampa Bay (Hillsborough, Pasco, Pinellas and Polk counties). See our service areas for local pages, including Tampa, Wesley Chapel, Zephyrhills and Lakeland. If your business is somewhere else in Florida, call 813-302-7151 and we will tell you what we can do. We help in English and Spanish, and we have an Arabic-speaking team member.
Related coverage and guides
Is a surety bond the same as insurance?
No. A surety bond protects the party that requires it, such as your customer or a government agency, while insurance protects you. If the surety pays a claim on your bond, you have to pay that money back. Many businesses need both, for example a license bond and a general liability policy.
How much does a $10,000 surety bond cost?
Much less than $10,000. You pay a premium, which is a percentage of the bond amount. The percentage depends on the type of bond and on the credit and experience of the person or business applying. The surety company sets the final price after underwriting.
Do I need a bond for my Florida contractor license?
Often, yes, depending on the county or city where you work. Each local government decides whether it requires a bond for its licenses and permits, and it sets the amount. Ask the local licensing office, then send us the requirement and we will help you apply for that exact bond.
Do all public construction contracts in Florida need bonds?
No. On state projects, contracts of $100,000 or less don’t need performance and payment bonds. On local government projects, the entity that awards the contract may waive them for contracts of $200,000 or less. Federal construction contracts over $150,000 require bonds. Always read the bid documents or the contract.
How much is a Florida notary bond?
$7,500 is the bond amount Florida requires to become a notary public, under s. 117.01, Florida Statutes. That is the amount of the bond, not what you pay for it. Your premium is a much smaller figure set by the surety company.
Can I get a surety bond with bad credit?
Sometimes. Small license and permit bonds are often approved on basic information, though weaker credit may mean a higher percentage. Contract bonds are harder, because the surety also reviews financial statements and experience. The surety company decides approval and price, and some applications are declined.
What happens if someone makes a claim on my bond?
You may have to pay it back. If the obligee says you didn’t meet the obligation, it can make a claim on the bond. When the surety pays a claim, it expects you, the principal, to repay what it paid.
Do you charge a fee to quote a surety bond?
No. There is no fee to the client for a quote. The surety company pays our agency’s commission. Call or text 813-302-7151, 7 days a week from 8am to 9pm, or send the form anytime, and we typically follow up within one business day.
About the Author
Raymundo Guzman
I’m Raymundo Guzman, an independent insurance agent and the owner of Covered by Guzman. I help business owners across Tampa Bay and central Florida find commercial auto, general liability, workers’ compensation, and related business coverage that matches how they actually operate, comparing options across the carriers available to me rather than selling one company’s product.
Independent Insurance Agent · License #W512374 | NPN #18906048 · 813-302-7151
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Request a Florida surety bond quote.
Tell us the bond type and amount, who is asking for it, and your business name. If you have the letter, application or contract that requires the bond, send it too.
