License & surety bonds
Surety bond — principal, obligee, surety (three-party agreement)
Not insurance for you — a guarantee for your customer or licensing board that you'll finish the job and follow the rules. Many county licenses require one.
Who needs it
Trades in counties that require a license bond (common in Florida), and anyone bidding public or GC work that asks for performance bonds.
Covered vs. not covered
License & surety bondsExclusions up front
Covered
- Client compensation if you abandon or botch a bonded job
- Licensing-board fines up to the bond amount
Not covered — read this first
- You — the surety pays the claim, then collects from you
- Anything general liability already covers
Trades that carry it
See what the full stack looks like for your trade:
Handyman Electrician Plumbing HVACFrequently asked questions
Is a bond the same as insurance?
No. Insurance transfers your risk; a bond guarantees your obligation and you repay the surety if it pays out.
Coverage without the decoder ring →
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