Surety Bonds in Georgia

Surety Bonds for Georgia Businesses, Contractors & Professionals

If you have been told you need a surety bond to obtain a license, secure a permit, bid on a construction project, fulfill a contract, or meet another business requirement, Tatum Insurance Agency can help.

We help businesses, contractors and professionals throughout Georgia obtain a variety of surety bonds, including bid bonds, performance bonds, payment bonds, license and permit bonds, commercial surety bonds, court bonds and other specialized bonds.

Not sure exactly which bond you need? That is common. Our team can help you identify the bond requirement, explore available options and guide you through the bonding process.

Contact Tatum Insurance Agency today to request a Georgia surety bond quote.

What Is a Surety Bond?

A surety bond is an agreement involving three parties:

  • Principal – The individual or business required to obtain the bond.

  • Obligee – The government agency, project owner or other party requiring the bond.

  • Surety – The company providing the financial guarantee behind the bond.

Unlike traditional business insurance, which is designed primarily to protect the insured from covered losses, a surety bond guarantees that the principal will meet certain contractual, legal or financial obligations.

If the principal fails to meet those obligations, a valid claim may be made against the bond. The surety may pay the claim according to the terms of the bond and generally has the right to seek reimbursement from the principal.

Common Types of Surety Bonds in Georgia

Bond requirements vary considerably depending on your business, profession, project and the organization requiring the bond. Tatum Insurance Agency can help Georgia businesses obtain many different types of bonds.

Contractor & Construction Bonds

Contractors may need surety bonds to qualify for projects, meet contractual requirements or comply with licensing and permitting requirements.

Common construction bonds include:

Bid Bonds
A bid bond provides assurance to a project owner that a contractor submitting a bid intends to enter into the contract and provide any required performance and payment bonds if awarded the project.

Performance Bonds
Performance bonds guarantee that a contractor will perform the work according to the terms and conditions of the construction contract.

Payment Bonds
Payment bonds help guarantee that covered subcontractors, laborers and material suppliers will be paid for work or materials associated with a bonded project.

Maintenance Bonds
Depending on the project, a maintenance bond may guarantee certain workmanship or contractual obligations for a specified period after the work has been completed.

Subdivision Bonds
Developers may be required to provide a subdivision bond guaranteeing completion of specified public improvements such as roads, sidewalks, utilities or drainage systems.

Contractors often need insurance coverage in addition to bonding. Tatum Insurance Agency can also help with Contractors Insurance in Georgia, including general liability, commercial auto, workers' compensation and other coverage for construction businesses.

License & Permit Bonds

State agencies, counties, cities and other governmental entities may require certain businesses or professionals to obtain a bond before a license or permit can be issued.

The exact bond requirement depends on the type of business, profession and jurisdiction involved.

If an agency has provided you with a bond form or told you that a bond is required, send us the information. We can help determine what is needed.

Auto Dealer Bonds

Motor vehicle dealers may be required to obtain a surety bond as part of the licensing process.

Because requirements can vary by license type and may change, Tatum Insurance Agency can help you determine the bond required for your particular dealership or license.

Commercial Surety Bonds

Commercial surety is a broad category covering bonds required by government entities, businesses and other organizations.

These can include license and permit bonds, business service bonds and many other financial or regulatory obligations.

If you have been asked to provide a bond and aren't sure what category it falls under, contact us. Our team can review the requirement and help determine the appropriate type of bond.

Court Bonds

Certain legal proceedings may require a court bond. Depending on the situation, these may include fiduciary, probate or other bonds required by a Georgia court.

Requirements depend upon the circumstances of the proceeding and the bond being requested.

How Much Does a Surety Bond Cost in Georgia?

One of the most common questions we receive is, “How much will my bond cost?”

The required bond amount and the amount you pay for the bond are not necessarily the same.

For example, being required to obtain a $50,000 surety bond does not automatically mean that you pay $50,000. Instead, you typically pay a premium for the bond.

The cost can depend on factors such as:

  • Type of surety bond

  • Required bond amount

  • Personal or business credit

  • Financial history

  • Business experience

  • Previous bonding history

  • Contract size and scope

  • Overall underwriting requirements

Some bonds can be issued relatively quickly with limited underwriting, while larger contract bonds may require more detailed financial and business information.

Contact Tatum Insurance Agency for help determining the cost of the bond you need.

How to Get a Surety Bond in Georgia

Although requirements vary by bond type, the bonding process generally involves a few basic steps.

1. Identify the Bond Requirement

Determine which organization is requiring the bond, the type of bond needed and the required bond amount.

If you have a letter, application or bond form from the obligee, providing that information can make it easier to identify the correct bond.

2. Complete the Bond Application

You will provide information about yourself or your business and the obligation being bonded.

The amount of information required will depend on the type and size of the bond.

3. Underwriting & Approval

Depending on the bond, the surety company may consider credit, financial strength, experience, previous bonding history and other underwriting factors.

More complex contract bonds may require additional documentation.

4. Bond Issuance

Once the application has been approved and the required premium has been paid, the bond can be issued and provided to the appropriate agency, project owner or other obligee.

Why Choose Tatum Insurance Agency for Georgia Surety Bonds?

Finding the right bond involves more than simply purchasing a document. You need to make sure you are obtaining the correct bond, in the correct amount, for the correct obligee.

Tatum Insurance Agency works with businesses and contractors throughout Georgia and can help with a wide range of commercial and contract surety needs.

Working with our agency gives you access to:

  • Assistance identifying the bond you need

  • Access to multiple insurance and surety markets

  • Experience working with contractors and Georgia businesses

  • Help with both commercial and contract bonds

  • Guidance through the application and underwriting process

  • Insurance options to complement your bonding needs

For contractors in particular, we can help coordinate bonding with other important business insurance needs, including general liability insurance, workers' compensation, commercial auto insurance, builders risk and other contractor coverage.

Georgia Surety Bond FAQs

Do I need a surety bond to operate a business in Georgia?

Not every Georgia business needs a surety bond. Requirements depend on the type of business or profession, applicable licensing requirements and the city, county or government agency involved. Bonds may also be required by private project owners or contracts.

Can I get a surety bond with less-than-perfect credit?

Possibly. Credit is an important underwriting factor for many bonds, but it is not necessarily the only consideration. Available options depend on the type and amount of the bond as well as the applicant's overall circumstances.

Is a surety bond the same as business insurance?

No. Business insurance is generally designed to protect the insured business against covered losses. A surety bond guarantees an obligation made by the principal to another party. Businesses may need both insurance and surety bonds.

How quickly can I get a surety bond?

Some relatively straightforward bonds may be issued quickly once the necessary information has been provided and underwriting is completed. Larger or more complicated contract bonds can require additional financial information and more extensive underwriting.

What information do I need to get a Georgia surety bond quote?

Start with the name of the organization requiring the bond, the type of bond requested and the required bond amount. If you were provided with a bond form or written requirement, having that available can be especially helpful.

Request a Georgia Surety Bond Quote

Whether you're a contractor bidding on a new project, a business owner applying for a license or a professional who has been told a bond is required, Tatum Insurance Agency can help you navigate the process.

We'll help determine the type of bond you need, explain the information required and explore available bonding options.

Contact Tatum Insurance Agency today to request a Surety Bond quote in Georgia.