License & Permit Bonds
License and permit bonds are required by state and local governments as a condition of obtaining or renewing a business license. They guarantee that your business will comply with applicable laws, regulations, and codes. Unlike contractor performance bonds (which guarantee project completion), license bonds guarantee regulatory compliance — and they're required for hundreds of business types across every state. If you need a bond to get your license, our agency can place it quickly and affordably.
Coverages we place
- Contractor license bonds (required by most states for licensed contractors)
- Auto dealer bonds (required for all vehicle dealerships)
- Freight broker bonds (BMC-84, $75,000 required by FMCSA)
- Tax bonds (sales tax, fuel tax, excise tax)
- Notary bonds
- Title agent and escrow bonds
- Collection agency bonds
- Mortgage broker and loan originator bonds
Who needs this coverage
Any business that needs a bond to obtain or renew a government-issued license or permit: contractors, auto dealers, freight brokers, mortgage brokers, notaries, collection agencies, tax preparers, travel agencies, and many more. Requirements vary by state and business type.
What drives your premium
- Bond amount (set by the licensing authority)
- Personal credit score of the business owner
- Business type and regulatory requirements
- State (bond amounts vary significantly by state)
- Claims history on prior bonds
- Financial strength of the business
Common exclusions
- Bond claims are reimbursable by you to the surety
- Intentional violations of law
- Activities outside the scope of the licensed business
- Claims filed after bond expiration
Frequently asked questions
How much does a license bond cost?
License bond premiums are typically 1–5% of the bond amount annually for applicants with good credit. A $10,000 contractor license bond might cost $100–$500/year. Applicants with poor credit may pay 5–15%. Many bonds can be approved and issued within 24 hours.
What's the difference between a license bond and insurance?
A license bond guarantees your compliance with government regulations — it protects the public, not you. If a valid claim is made against your bond, the surety pays the claimant and you reimburse the surety. Insurance protects you from loss; bonds guarantee your behavior.
How fast can I get a license bond?
Most license and permit bonds can be approved and issued within 24 hours — often same-day for applicants with good credit and standard bond types. We handle the entire process and deliver your bond certificate directly.
Related coverage
Get a free quote or call (321) 206-8035.