Bonds confuse a lot of contractors because they look like insurance but work nothing like it. Insurance protects you. A bond is a three-party guarantee — between you (the principal), the party requiring the bond (the obligee), and the surety — that the work gets done and the bills get paid. If the surety has to pay out, you pay them back.
The three bonds you’ll meet most
- Bid bond — guarantees you’ll honor your bid and enter the contract if you win.
- Performance bond — guarantees you’ll complete the contract per its terms.
- Payment bond — guarantees your subcontractors and suppliers get paid.
License & permit bonds
Separate from contract bonds, Florida’s DBPR and many local jurisdictions require license or permit bonds to hold a contractor license. These guarantee you’ll follow the licensing rules — a different animal from the bonds tied to a specific job.
Building bonding capacity
Sureties underwrite you like a lender: financials, work history, and character all matter. The contractors who bid the biggest work didn’t get there overnight — they built a relationship with a surety over time. We help you start small, establish a track record, and grow the capacity that lets you chase larger projects.
Talk it through with a real advisor
Every business is different. Tell us about yours and we’ll tell you exactly where you stand — no pressure, no jargon.
Figures cited reflect 2025–2026 conditions from sources such as FSLSO, Florida OIR, and NCCI and may change. This is general information, not legal, tax, or coverage advice.