Surety bonds
Premium
What you pay for a surety bond or insurance policy. For a bond it is a fraction of the bond amount set by underwriting, not the full amount at risk.
A premium is the amount you pay for a bond or insurance policy, usually a small percentage of the bond amount or a set policy rate. It buys the guarantee or coverage for a defined term.
Bond premiums are driven largely by underwriting, so credit and financial history move the number. Budgeting premiums across every required bond is part of planning a multi-state license footprint.
Related terms
Where this comes up
Premium is one piece of getting and keeping a business licensed. We handle the filings, bonds, and renewals that surround it across every state where you operate.