Independent Insurance Agency — Serving All of Texas  📞 (361) 248-3307

Surety Bonds for Texas Contractors

Surety bonds are a requirement for many Texas contractor licenses and commercial contracts. They're not insurance — they're a guarantee that you'll complete your work and meet your obligations. If you don't, the bond pays the claim. We help contractors get bonded fast, whether you need a license bond, a performance bond, or a payment bond.

What It Covers

  • License and permit bonds — required for many Texas contractor licenses
  • Performance bonds — guarantee you'll complete the contracted work
  • Payment bonds — guarantee you'll pay subcontractors and suppliers
  • Bid bonds — guarantee you'll honor your bid if selected
  • Maintenance bonds — cover defects after project completion
  • Janitorial and service bonds — protect clients against employee dishonesty

Who Needs This Coverage

  • Contractors required to be bonded for their Texas license
  • Contractors bidding on public or government projects
  • General contractors required to provide performance and payment bonds
  • Janitorial and service contractors whose clients require bonding
  • Contractors working on projects over certain dollar thresholds

Common Claims We See

A contractor abandons a project — the performance bond pays to complete it
A GC fails to pay subcontractors — the payment bond covers their claims
A licensed contractor fails to meet code requirements — the license bond pays the claim
A janitorial employee steals from a client — the service bond covers the loss

Frequently Asked Questions

Is a surety bond the same as insurance?

No. Insurance protects you from losses. A surety bond protects the party you're working for — it guarantees your performance. If a claim is paid on your bond, you're typically required to reimburse the surety company.

What bonds do Texas contractors need?

It depends on your trade and license type. Plumbers, electricians, and HVAC contractors typically need license bonds. Government and commercial projects often require performance and payment bonds. We'll help you figure out what you need.

How much does a surety bond cost?

Bond premiums are typically 1–3% of the bond amount per year, depending on your credit and financial history. A $10,000 license bond might cost $100–$300/year.

Ready to get covered?

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