Coverages / Surety bond
Bond · 18 of 37 trades
Surety bond
A guarantee to a third party that you will perform or comply; not insurance for you, but a credit instrument. Many state contractor licences require a licence bond; public work requires bid and performance bonds under state law and, federally, the Miller Act.
- 1Trades carrying it 18 of 37
- 2Highest injury rate 4.6 per 100
- 3Lowest of them 1.5 per 100
- 4Typical requirer Licensed contractors; anyo
What it is for
A bond is not insurance for you. It is a three-party guarantee: the surety promises the obligee (a licensing board, a project owner, a client) that you will perform or comply, and if you do not and the surety pays, it recovers from you. Licence bonds are required by many state contractor boards; bid, performance and payment bonds are required on public work by state law and, on federal projects, by the Miller Act. Fidelity bonds, often required of janitorial and home-care firms, cover employee theft from a client.
How it is bought
Trades that carry surety bond
Licensed contractors; anyone bidding public work. On this site, 18 of 37 trades list it, from framing contractors at 4.6 recordable cases per 100 workers to site preparation (excavation) contractors at 1.5.
What to ask a broker
- What the policy excludes that your work actually involves.
- Which contracts or licences require this line and the limit they name.
- Whether it is a standalone policy or an endorsement, and what the deductible is.
Coverage descriptions are editorial. Legal figures: 49 CFR 387.9 — Schedule of limits, public liability (eCFR). Injury rates: BLS Survey of Occupational Injuries and Illnesses, Table 1 (2024), incidence rates per 100 full-time workers. Checked 2026-10-23.