Surety bonds
Bond amount
The most a surety will pay on a valid claim, set by the state or obligee that requires the bond. Also called the penal sum.
The bond amount, sometimes called the penal sum, is the most a surety will pay on a bond. The state or obligee sets it based on the license type and perceived risk.
The bond amount is not what you pay; your premium is a fraction of it. Knowing the required amount in each state is the first step in pricing and placing the right bond for a license.
Related terms
Where this comes up
Bond amount 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.