License & Permit Bonds
Bonds required by many state and local authorities before certain businesses can operate.
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License & Contract Needs
Surety Bonds
The right bond for your license, permit, or contractual requirement.
Coverage overview
The right bond for your license, permit, or contractual requirement.
Echo helps businesses identify the bond required by an obligee and works with available markets to keep the application process clear and efficient.
Coverage options
Contract Bonds
Bid, performance, and payment bond solutions for qualifying contractors and projects.
Commercial Bonds
A range of bond types used to satisfy legal, court, fiduciary, or business requirements.
Application Guidance
Help identifying requirements and organizing the information needed for underwriting.
FAQ
Frequently Asked Questions
What is a surety bond, and how is it different from insurance?
A surety bond is a three-party guarantee: you (the principal) promise an obligee, such as a state agency or project owner, that you will follow the law or finish the contract, and the surety company backs that promise. Unlike insurance, a bond protects the obligee, not you. If the surety pays a claim, you are required to pay it back.
How much does a surety bond cost?
You pay a premium that is a percentage of the bond amount, not the full amount. Applicants with good credit often pay around 1% to 3% for many commercial bonds, and some small license bonds have a low flat premium. Credit, financial strength, experience, and the type of bond all affect the rate.
What is a BMC-84 freight broker bond?
The FMCSA requires freight brokers and freight forwarders to have $75,000 in financial security before their authority becomes active. Most brokers meet the requirement with a BMC-84 surety bond, which guarantees payment to motor carriers and shippers if the broker fails to pay.
What is the difference between bid, performance, and payment bonds?
A bid bond guarantees that a contractor who wins a bid will sign the contract at the bid price. A performance bond guarantees that the contractor will finish the work according to the contract. A payment bond guarantees that subcontractors and suppliers will be paid. Public construction projects commonly require all three.