How much does a $50,000 surety bond cost?

A surety bond is a type of financial agreement which has been designed to guarantee that certain businesses act in accordance with the obligations to which they are held by law. These agreements are made between three parties known as the principal, the surety, and the obligee.

The principal is usually a business owner, and is the party obligated to post the surety bond. The principal pays the second party, the surety, a surety bond premium. This is a small fraction of the total bond amount.

In exchange for this premium, the surety, which is usually a specific surety company, bonding company, or bonding agency, ensures that money to the value of the surety bond is readily available.

The type and value of the surety bond which the principal needs is determined by the third party, the obligee. The obligee is usually the government or a government agency and sets bond requirements as a form of collateral in case the principal fails to meet the standards and regulations to which they are held.

There are many different types of surety bonds, which can vary significantly in their value. The type of bond you need, and the price of that bond is dependent upon several factors. These include the industry you are operating in, the local government under which you operate, and the scale at which you operate.

For example, certain small scale farming contractors in the central United States require small bonds to the value of $5,000. Yet some court bonds can be worth more than $1,000,000.

It is important to note that there is a significant difference between the value of a surety bond, or the surety bond amount, and the price paid for your surety bond, or the surety bond cost. In most cases, business owners are only required to pay a small fraction of the overall bond value.

The size of this fraction will vary depending on the applicant’s credit history, but there are rough guidelines which can be set.


In the case of an applicant with average credit history, it is normal for surety underwriters to suggest a rate between 3% and 5% of the total bond value. Therefore, for many applicants, a $50,000 surety bond will cost between $1,500 and $2,500—usually paid as an annual premium.

For applicants with a good credit score above 675, rates are often reduced to between 1% and 3%. For a bond worth $50,000, that means paying between $500 and $1,500. For more specific guidance, you can search for a bond quote or use our bond calculator.

How to get a $50,000 surety bond with bad credit.

Applicants with bad credit, which means a score of 599 or below, are considered to be “higher risk”. It is common practice for bonding companies to charge applicants with bad credit a higher bond rate as a way to mitigate this associated risk.

These rates often fall between 5% and 10%. Therefore, in the case of a $50,000 surety bond, applicants with bad credit might expect to pay between $2,500 and $5,000.

Whilst rates may be higher for applicants with a poor credit, in most cases it is still possible to access surety bonds, whatever your credit history. Lance Surety Bonds specializes in finding surety bonds at the best bond prices for all of their clients.

If you are concerned about your personal credit, then your best option is to begin the online application process now. Equally, for fast and more specific information, you can apply for a free quote.

Most common $50,000 surety bonds

Auto Dealer Bonds

The auto industry is subject to a wide variety of motor vehicle dealer bond requirements, which vary between states and depending on the size of the dealership. For motor vehicle dealers operating in states such as California, North Carolina and Virginia, the DMV often requires a $50,000 surety bond.

Contractor License/Contract Bonds

The value of contractor bonds will often vary depending on the size of the contract. However, $50,000 contractor license bonds are common, and are required in states such as Illinois, Ohio and Utah.

Mortgage Broker Bonds

Surety bonds are especially important in industries where businesses have potential leverage over clients. To safeguard clients from principal malpractice, local governments in states such as Oregon, Maryland and Nevada require some mortgage brokers to post bonds worth $50,000.

For the best rates on your surety bond, start the online bonding process now.

About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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