Small Business Surety Bonds

Provide your customers with a financial guarantee that the agreed-upon work will be completed.

Two people shaking hands next to a table with some construction plans and a work helmet

Surety bonds sold through trusted Thimble partner, Propeller Insurance.

Secure Your Business with Surety Bonds*

As a small business owner, building trust is everything. Whether you are a general contractor starting a new project or a service provider expanding into new markets, proving you can get the job done is key to winning contracts. That is where surety bonds come in. They provide the essential security your clients need to hire you with confidence.

If you want to take on bigger jobs, help protect your clients, and fuel your business growth, understanding surety bonds is a great first step.

What is a Surety Bond?

A surety bond is not a traditional insurance policy. Instead, it is a written guarantee that you will fulfill your obligations under a contract. If you fail to complete the work or meet the project requirements, the bond provides financial protection to your client.

Think of it as a three-way agreement:

The Principal (You): The business owner or contractor who needs the bond to guarantee their work.
The Obligee (Your Client): The person, company, or government agency requiring the bond to ensure protection from risk.
The Surety: The company that issues the bond and backs your promise to complete the work.

When you secure a surety bond, you show your clients that you are a reliable, professional risk management partner.

Who Needs a Surety Bond?

Surety bonds are tailored for business needs across various industries, but they are especially critical for:

Construction Workers and Contractors:

Plumbers, electricians, and general contractors often need bonds to bid on public projects or secure necessary

Service Providers:

Cleaners, landscapers, and consultants may need bonds to demonstrate financial responsibility and provide clients with confidence that contractual obligations will be met.

Retailers and New Businesses:

Depending on your state, you might need a specific bond just to open your doors and maintain effortless compliance with local laws.

Get Bonded Quickly with Propeller**

At Thimble, we know that getting the right coverage shouldn’t slow you down. We specialize in fast, flexible solutions that grow with confidence alongside your business. To give you the best experience possible, we have teamed up with Propeller as our preferred partner for surety bonds.

Propeller makes obtaining your bond fast and straightforward so you can meet any regulatory requirements you may have and secure that next big job today.

Ready to win your next contract?

Get Your Free Surety Bond Quote with Propeller

FAQs

How much does a surety bond cost?

The cost of your bond can depend on the total bond amount required by your client and/or your personal credit history. You typically only pay a small percentage of the total bond amount, often between one and three percent. For example, a $10,000 bond might only cost you a few hundred dollars.

How is a bond different from general liability insurance?

General liability insurance helps protect your business from the financial consequences that can result from non-employee third-party claims of bodily injury, property damage and personal and advertising injury. A surety bond, on the other hand, provides protection to your client if you fail to deliver on your contract obligations. Both are essential for comprehensive coverage and peace of mind.

Who sells Surety Bonds?

You can purchase a surety bond directly yourself through Propeller, or you can go through an insurance broker, much like you can with small business insurance policies.

What do Surety Bonds cover?

Surety bonds protect your financial obligations if you fail to meet the terms of your contractual duties. A surety bond provides financial protection to your client for issues like incomplete work, missed deadlines, or non-compliance with project requirements. This gives your clients peace of mind and proves you are committed to doing the job right.

Do Surety Bonds expire?

Yes, most surety bonds have a set term and will expire after a specific period, usually stated in the bond agreement. Some bonds are renewable on an annual basis, while others may be tied to the length of a project or contract. It’s important to check the bond’s expiration date and renew or replace it as needed to avoid a lapse in coverage.

Note:

*Surety bonds vary and are subject to the terms and conditions of the specific bond.

**Any quotes and bonds you receive for surety bonds are provided through Propeller, Inc. and are not a Thimble product.

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