Surety Bonds
From securing contracts to meeting licensing and regulatory requirements, surety bonds play an essential role in doing business. Whether you’re a contractor, service provider, or business owner, bonds help demonstrate accountability and compliance. At Wisco Insurance, we help Wisconsin businesses obtain the bonds they need efficiently and with minimal disruption — so projects can move forward without unnecessary delays.
What Surety Bonds Protect
Contract Performance
Performance bonds help guarantee that a contractor or service provider completes work according to the terms of a contract. These bonds are often required for public projects and many private jobs throughout Wisconsin, helping project owners feel confident that obligations will be met.
License and Permit Compliance
Many Wisconsin state agencies and local municipalities require license or permit bonds to ensure businesses follow regulations and operate responsibly. These are common for contractors, auto dealers, and specialty trades and are often required before a license can be issued or renewed.
Payment Protection
Payment bonds help ensure that subcontractors, suppliers, and laborers are paid if the bonded party fails to meet their financial obligations. This protection supports fair business practices and helps prevent disputes on larger projects.
Court and Fiduciary Bonds
Court bonds and fiduciary bonds are required in certain legal situations, such as estate administration, guardianship, or appeals. These bonds help protect involved parties by ensuring responsibilities are carried out properly under court supervision.
Business Service Bonds
Business service bonds help protect clients against theft or dishonest acts committed by employees while working on-site. These bonds are commonly used by cleaning services, home care providers, and other businesses that operate in customer homes or facilities.
Why Surety Bonds Matter in Wisconsin
They’re Often Legally Required
Many Wisconsin licenses, permits, and public contracts require bonding as a condition of approval. Without the proper bond, businesses may be unable to operate or bid on projects.
They Build Trust with Clients
Being bonded shows clients, customers, and government agencies that your business stands behind its work and financial responsibilities — an important factor when competing for contracts.
They Open Doors to Bigger Projects
Public projects and larger commercial contracts across Wisconsin often require performance and payment bonds. Having bonding in place helps businesses pursue growth opportunities with confidence.
Surety Bond FAQs
What’s the difference between insurance and a surety bond?
Insurance is designed to protect the policyholder from loss, while a surety bond guarantees to a third party that an obligation will be fulfilled. In a surety bond, there are three parties: the principal (your business), the obligee (the entity requiring the bond, such as the State of Wisconsin or a municipality), and the surety (the bonding company). If a claim is paid, the principal is responsible for reimbursing the surety. This structure makes bonds a financial guarantee of performance or compliance rather than traditional risk transfer like insurance.
Who needs to be bonded in Wisconsin?
Many Wisconsin businesses are required to carry bonds as part of licensing, permitting, or contract requirements. This commonly includes contractors, auto dealers, freight brokers, specialty trades, and businesses working on public projects. Courts may also require bonds for fiduciaries, estate administrators, or guardians. If your business operates in areas like Brodhead, Janesville, or Kenosha and must meet state or local regulations, bonding may be mandatory before you can legally operate or bid on certain work.
How much does a surety bond cost in Wisconsin?
The cost of a surety bond depends on the bond type, bond amount, and the applicant’s credit profile. Many license and permit bonds are relatively inexpensive, often costing a small percentage of the total bond amount. Performance and payment bonds for larger projects are typically priced based on financial strength and experience. Wisco Insurance helps Wisconsin businesses find competitive bonding options that fit their needs and budget.
Can I get bonded with bad credit?
Yes, it’s often possible to get bonded even with less-than-perfect credit, though premiums may be higher. Some bonding companies specialize in working with applicants who have credit challenges, particularly for license or permit bonds. For Wisconsin contractors or small business owners with credit concerns, working with an independent agency like Wisco Insurance can help identify bonding options that keep projects moving forward.
How long does it take to get bonded?
Many common bonds — such as license, permit, or service bonds — can be issued quickly, sometimes the same day, once required information is provided. More complex bonds, like performance or payment bonds for large projects, may require additional financial review and take longer to finalize. Timing depends on bond type, documentation, and underwriting requirements, but Wisco Insurance works to streamline the process whenever possible.