Performance Bonds
in Florida

Performance bond premiums typically range from 1% to 5% of the bond amount, depending on your credit score, business financials, experience, and project size. Strong credit and proven experience can get rates as low as 1-2%. Poor credit or startups may pay 4-5% or require collateral. The bond amount is usually 100% of the contract value.

With complete application and financial documents, most performance bonds are issued within 24-48 hours. Simple license bonds can be even faster. The timeline depends on underwriting review, credit checks, and surety approval. Have your financial statements, project details, and business information ready to expedite.

Required documents typically include: completed bond application, personal financial statement (or business financial statements), bank authorization letter, copy of the contract or bid package, business ownership information, and resume/business history. For larger bonds ($500K+), additional financial documentation, tax returns, and project references may be requested.

Yes, but options are more limited. With fair or poor credit (below 650), you may still qualify but at higher premiums (4-10%) and may need to provide collateral (cash, real estate, or irrevocable letter of credit). Some sureties specialize in high-risk bonding. Strong business financials, years of experience, or a strong cash position can help offset credit challenges.

If you default on a bonded contract, the project owner (obligee) can make a claim against the bond. The surety will investigate the claim. If valid, the surety pays the obligee up to the bond amount to complete the project or correct the deficiency. After paying, the surety will seek reimbursement from you (the principal). Bonds are not insurance — they are credit instruments that you must repay. Avoid claims by completing work per contract or communicating issues early.

Performance bonds remain in effect until the contracted work is completed and accepted by the project owner, plus any warranty/maintenance period (typically 1-2 years after completion). Some bonds, like license & permit bonds, are annual and must be renewed. The bond term is specified in the bond document and aligns with your contract timeline.