Permit bond
Required by many cities and counties before they issue street, sidewalk, right-of-way, or other permits.
What it is
A permit bond is a surety bond a city, county, or agency requires before issuing certain permits — commonly for work that affects public streets, sidewalks, utilities, or rights-of-way. It is generally intended to assure you follow the permit’s rules and restore public property if your work damages it.
Who requires it
- •Cities and counties — Local agencies often require a permit bond before issuing right-of-way, encroachment, street-cut, or sidewalk permits.
- •Utility and DOT agencies — Work affecting utilities or state roads may require a permit bond from the controlling agency.
What drives the price
- •Required bond amount — The agency sets the amount; premium is a percentage of it.
- •Your credit — Most permit bonds are credit-based, so credit affects the rate.
How surety bonds work
A surety bond is a three-party agreement between you (the principal), the government agency or party requiring it (the obligee), and the surety company that backs it. It is not insurance for you — it protects the obligee and the public. If a valid claim is paid on your bond, you are responsible for reimbursing the surety. Premium is a small percentage of the bond amount and is driven mostly by the required bond amount and the applicant’s credit.
Ready to get bonded? Quote and buy your permit bond online.
Quote & buy at SuretyBondly →Frequently asked questions
Why does the city require a permit bond?
It assures the agency that you will follow the permit conditions and repair any damage to public property — protecting the public, not you.
How much does a permit bond cost?
Premium is a percentage of the agency-set bond amount and depends on that amount and your credit. A quick quote shows your number.
Do I need a new bond for each permit?
It depends on the agency — some accept an annual blanket permit bond, others require one per permit. Check the issuing agency’s rules.
Get the small-business insurance newsletter
Plain-English coverage tips, comparisons, and offers — no spam, unsubscribe anytime.