How to Get a Surety Bond: Steps, Timing and What You’ll Need

Updated October 6, 2026

Many licenses, permits, contracts and court cases require a surety bond before you can move forward. Getting one is usually simpler than people expect, but each step depends on the type of bond and the level of risk it involves.

This guide explains how to get a surety bond with American Surety Bonds Agency, from finding the right bond to filing it with the agency or party that requires it.

A surety bond is an agreement between three parties. You, the principal, obtain the bond, and the surety company backs it. The obligee, usually a state agency, court or project owner, requires it.

The surety guarantees to the obligee that you will follow the law, complete a contract or meet another obligation. Unlike insurance, the bond protects the obligee and the public, not the business that obtains it.

You get a surety bond through a surety agency. American Surety Bonds Agency is licensed in all 50 states, and we place your bond directly with the surety company best suited to your credit profile instead of shopping your application around. Many license and permit bonds are also available online through our Instant Issue platform.

Start with the obligee. The agency, court or project owner that requires the bond sets the bond type and amount. In many cases, it also provides the exact bond form you must use. You can usually find these details in your license application, permit instructions or contract documents.

Our bonds fall into four main categories:

• License and permit bonds, required to obtain or renew many business licenses and permits
• Court bonds, required in probate, guardianship, appeal and other court cases
• Contract bonds, such as bid, payment and performance bonds for construction projects
• Commercial bonds, such as lost instrument and utility deposit bonds

If you’re not sure which bond applies to you, browse our surety bonds by state or contact our team. We’ll help you match the requirement to the right bond before you apply.

How you apply depends on the bond. American Surety Bonds Agency offers two paths:

• Instant Issue: for many license and permit bonds, you complete a short online application, pay by credit card and download your bond right away. The portal displays your premium before you pay.
• Underwritten: larger bonds and bonds that carry more risk go through our underwriting team. You complete our secure online application. Our team then reviews it and contacts you if we need more information.

If your Instant Issue application can’t be approved online, for example because of your credit, you still have options. Complete our standard bond application, and our team will review it and work to find a bonding program that fits your situation.

What we ask for depends on the bond obligation and the bond amount. Most applications include a credit check. Depending on the bond, the surety may also ask for:

• Personal financial statements
• Business financial statements
• A resume or summary of your business experience

Why is all this information necessary? A surety bond is a guarantee, not insurance. Because the surety guarantees your obligation to the obligee, the underwriter needs to understand your ability to meet it. Having these documents ready when we ask for them helps our team review your application without delays.

Instant Issue applicants see their premium in the portal before they pay. Underwritten applicants receive their premium with their approval. For underwritten license and permit bonds, most applicants can receive their approval the same day.

Once you review your approval, you can pay by Visa, MasterCard, American Express or check.

Instant Issue bonds are ready to download as soon as you pay. For underwritten bonds, we prepare your signed and sealed bond with the Power of Attorney attached and mail you the originals.

Before you file, check that your name, address and bond amount are correct. If anything needs to change, contact us. Then sign the bond as the principal and keep the Power of Attorney attached, because the bond is not valid without it. Submit the bond to your obligee by its deadline, and if you’re unsure where to send it, contact us or the obligee directly.

Timing depends on the type of bond and the documents it requires:

• Instant Issue bonds: issued in minutes once you pay.
• Underwritten license and permit bonds: most applicants receive their approval the same day, and we mail the original bond once you pay. Applications that require financial statements may take longer while the underwriter reviews them.
• Contract bonds: bids and contracts of $250,000 and under go through our Fast Track application, which lets us set up your bonding quickly, even when a bid date is close. For larger bids and contracts, timing depends on how quickly you return your completed bond kit for review.
• Court bonds: timing depends on when we receive copies of the court documents for your case, since the bond can’t be issued without them.

If your obligee has a filing deadline, start your application as soon as you know a bond is required so there’s time to gather any documents your bond needs.

Your premium is a rate applied to the bond amount. Rates generally run from 0.5% to 15% or more. Your premium is based on the bond type, the bond amount, your credit and, for some bonds, your financial strength and experience. For most bonds, the premium starts as low as $100.

For higher-risk bonds or applicants, the surety may also require collateral before it issues the bond. If your credit needs work, the next section explains your options.

Often, yes. American Surety Bonds Agency has programs for applicants with impaired credit, and your premium will reflect your credit profile. Visit our Credit Challenged page to learn how these programs work.

Contract and court bonds follow the same basic steps, with a few differences.

Contract bonds, such as bid, payment and performance bonds, each cover one project. Our Fast Track application is mainly for bids and contracts of $250,000 and under. Larger bids and contracts require our complete Contractor Bond Kit, which gives the surety a full picture of your company, including financial statements, tax returns and references. We may also ask for updated financial statements, which contractors provide each year. A contract bond usually has a one-time premium and remains in effect until the project is complete and the obligee releases it. Eligible small contractors may also qualify for SBA-guaranteed bonds, which we can help with. Our SBA Surety Bond Guarantee Program guide explains how the program works.

Court bonds, such as probate, guardianship and appeal bonds, are required by a court. We need copies of the court documents for your case before the bond can be issued, and most court bonds renew each year until the court releases them.

Most bonds have a set term and must be renewed to stay in force. We mail your renewal invoice at the end of the month, about 60 days before your bond expires. Our surety bond renewal guide explains each renewal type and what your obligee may require.

Whether you need a license bond, a court bond or a contract bond, our team can help you find the right bond and complete your application.

Find Surety Bonds by State

Explore All Surety Bond Types

Complete our simple online application, or speak with one of our surety specialists today.

American Surety Bonds Agency proudly serves businesses nationwide with fast approvals, competitive rates, and responsive service.

American Surety can also assist you with any of your other bonding needs, as we are licensed in all 50 states. Call us today at (404) 486-2355 or our toll-free number (877) 201-8976 or find us on Facebook, Twitter, or LinkedIn!