Protect the Strength
of Your Business

Protect Your Business Interests with a Surety Bond

Let Your State Farm® Agent Help with Your Bonding Needs

A surety bond can help protect the interests of your growing business. We combine the financial strength of our full service commercial surety bond department with local agents to provide you with superior service.

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Surety Bond

When your business is required to guarantee its performance to another, your State FarmĀ agent has surety bond solutions to back up your guarantee that fit your needs.

Why do I need a surety bond for my business?

  • As a business owner, you may need a surety bond to guarantee payment for sales taxes or utility bills.
  • As a contractor, you may need to post a licence or permit bond to guarantee your work for licencing requirements with municipalities.
  • Lawyers may have clients that are required to post court bonds, such as administrator or executor bonds, to guarantee their performance while distributing assets in estates.

Types of Surety Bonds

Licences and Permit Bonds

Licence and permit bonds back up guarantees that, in doing its work, your business will comply with applicable codes and regulations established by a government entity, such as a city, town, or province (the "obligee").

Types include:

  • Electrician's licence
  • Plumber's licence
  • General contractor's licence
  • Driveway permit
  • Sign permit
  • Sales tax

Example: electrical contractors may be required to post a bond as part of their licencing requirements. The obligation of the bond may specify that the contractor will follow the electrical codes established in that city, town, or municipality.

The requirements of the bond and ordinance must be understood before the bond is written. The agent may ask you to obtain a copy of the ordinance or law that specifies the requirements and a copy of the bond, if the obligee has its own.

Depending upon the type of obligation, supporting documentation such as signatures, financial statements, and other supplemental information may be required.


This is only a general description of coverages of the available types of insurance and is not a statement of contract. Details of coverage, limits, or services may not be available for all businesses and vary in some provinces. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements.