Commercial / Bonds

Michigan Surety Bonds

A surety bond isn't insurance for you — it's a three-party guarantee that you'll meet an obligation, backing your promise to a customer, a government agency, or a project owner. Michigan contractors and licensed businesses need them to pull permits, win bids, and stay compliant.

What we do for surety bonds clients

• Fast issuance — we know which bonds Michigan agencies and projects require and turn most around quickly.
• Competitive rates — bond pricing is based on the bond type and your credit — we shop surety markets for your best rate.
• The right bond — license, permit, contract, performance, payment, and court bonds each work differently — we get you the correct one.
• Growing bonding capacity — as your business grows, we help build the surety relationships that raise your bonding limits.

Bonds we write

Contractors (bid, performance, and payment bonds), licensed trades and professionals (license and permit bonds), auto dealers, freight brokers, notaries, and businesses that need court or fiduciary bonds across Michigan.

Common Michigan bond types

• License & permit bonds — required to hold a license or pull permits in many trades.
• Bid bonds — guarantee you'll honor a bid if awarded the job.
• Performance bonds — guarantee you'll complete a contract as agreed.
• Payment bonds — guarantee your subs and suppliers get paid.
• Court & fiduciary bonds — required in certain legal and estate matters.

Common questions

What is a surety bond?

A three-party agreement: you (the principal), the party requiring the bond (the obligee), and the surety that backs your promise. If you fail to meet the bonded obligation, the surety pays the obligee — and you repay the surety. It guarantees your performance, it doesn't insure your losses.

How much does a surety bond cost in Michigan?

Usually a small percentage of the bond amount — often 1–15% depending on the bond type and your credit. A $10,000 license bond might cost $100–$500 a year. We shop surety markets to find your best rate.

What bonds do Michigan contractors need?

It varies by trade and municipality — commonly license/permit bonds to operate, plus bid, performance, and payment bonds on larger or public projects. We confirm exactly what your work and jurisdiction require.

Can I get bonded with bad credit?

Often yes. Many license and permit bonds are available across credit ranges, sometimes at a higher rate, and specialty markets exist for tougher credit. Tell us the bond you need and we'll find a market for it.