Surety Bond in Ohio

A surety bond is a contract between three parties: the principal (the individual or company requesting the bond), the obligee (the party requiring the bond), and the surety (the company providing the bond). The principal or obligee agrees to fulfill all obligations of a contract, while the surety guarantees that the principal or obligee can complete those obligations.

Surety bonds are required for many businesses in Ohio, such as contractors, lenders and business owners. These bonds protect the bondholder from any financial losses should the bonded party fail to complete their obligations. Surety bonds come in various types and vary in cost, depending on the type of industry and the amount of risk.

It's important to note that, unlike Ohio business insurance, surety bonds are not a financial product and do not offer any coverage or protection for the principal or obligee. The bond only guarantees that if the bonded party fails to meet their obligations, the surety will pay a certain amount of money to the obligee.

At Bellwether Insurance, we understand the need for businesses to be bonded in order to stay compliant and competitive. We offer a wide range of surety bond services throughout Ohio, offering competitive rates and fast service. Our experienced team is here to help you find the right bond for your specific needs at the best possible rate. Contact us today to learn more about our surety bond services in Ohio!

There are different regulations and requirements for surety bonds throughout Ohio, so it's important to check with local permits and licenses. For example, oil and gas wells in Ohio must have surety bonds to ensure proper operation of the well and any surrounding public land.

Other groups that may need surety bonds in Ohio include:

• Public contractors - especially for government projects
• Construction contractors - including sub-contractors
• Banks and lenders - to secure loans
• Automobile and vehicle dealers - to guarantee sale contracts
• Motor carriers - to ensure shipping and delivery of goods
• Freight brokers
• Carpet cleaners
• Landscapers and lawn care services
• Plumbers
• Electricians
• Realtors - to guarantee lawful sales and payments
• Stockbrokers - to secure financial transactions

You may also need to obtain specific surety bonds for certain licenses you hold. It's important to learn more about the types of bonds available and the requirements in your area to ensure you remain compliant and protected.

When a surety bond is purchased in Ohio, the bonded party agrees to fulfill all of their obligations under the contract. The surety then guarantees that if the bonded party does not complete the contract, they will pay a certain amount of money to the obligee. Here are five steps for understanding how surety bonds work in Ohio:

1. The principal applies for a surety bond with an insurance provider or bonding company.
2. The insurer evaluates the risk associated with the principal and establishes a bond rate.
3. The principal pays for the bond premium and the insurer issues the surety bond to them.
4. If there is a breach of contract, the obligee can file a claim against the surety bond.
5. The surety will investigate and determine if the claim is valid. If it is, the surety will pay up to the amount of the bond.

Sometimes, the surety may require the bonded party to reimburse them for any costs associated with the claim. It is important to understand your obligations and responsibilities when entering into a contract so that you can be in compliance with Ohio's surety bond requirements.

Just the same way there are different types of business insurance – such as general liability, commercial auto insurance and workers compensation - there are also different types of surety bonds available in Ohio. Here are some common types of surety bonds:

Ohio Bid Bonds

Ohio Bid Bonds are a crucial aspect of any construction or contracting project. It is a form of insurance that ensures the completion of a project according to the terms agreed upon between the contractor and the project owner. Essentially, Ohio Bid Bonds provide a safety net for both parties involved in a project.

As a contractor, having a bid bond can improve your credibility and increase your likelihood of being awarded a project bid. On the other hand, as a project owner, a bid bond guarantees that you will not incur any financial loss in the event that the contractor does not fulfill their obligations.

Ohio Contract Bonds 

Ohio Contract Bonds are insurance policies designed to protect the parties involved in construction projects. These bonds are a type of surety bond aimed at ensuring that contractors fulfill their obligations and complete the project as per the agreed-upon terms and conditions. The insurance provider issues the bond and guarantees the payment to the obligee if the contractor fails to perform its duty. This bond helps to limit the risks associated with construction projects and protects the parties involved from potential losses.

Ohio License and Permit Bonds

Ohio License and Permit Bonds are needed by certain businesses in order to operate legally. These bonds guarantee that the business will comply with any legal requirements and regulations imposed by the state or local government. They also provide protection for any customers who are affected if the business fails to meet its obligations.

Performance Bonds

Performance Bonds are a type of surety bond issued by an insurer to guarantee the completion of a project as per the terms agreed upon between the contractor and the project owner. This bond provides assurance that any losses incurred due to a failure to perform will be covered up to an agreed-upon amount specified in the bond.

Fidelity Bonds 

Fidelity Bonds are designed to protect businesses and individuals against losses that result from employee dishonesty. These bonds cover losses incurred due to fraud, embezzlement, or theft by an employee. Fidelity bonds can provide peace of mind for business owners and help them manage the risks associated with their employees.

Ohio Auto Dealer Bonds

Ohio Auto Dealer Bonds are required for any business that is involved in the buying and selling of motor vehicles. These bonds help to protect consumers from losses due to fraud or other illegal activities by a dealer. The bond guarantees that the dealer will abide by all laws and regulations set forth by the state. When a claim is made against the bond, the surety company can pay out up to the bond's full amount.

Ohio Freight Broker Bonds

Also known as a Motor Carrier Bond, an Ohio Freight Broker Bond is required for any business that transports goods from one state to another. This bond guarantees that the freight broker will operate in accordance with all laws and regulations set forth by the federal government. If a claim is made against the bond, the surety company can pay out up to the full amount of the bond.

Payment Bonds

Payment Bonds are a type of surety bond that guarantees payment to subcontractors, laborers, and material suppliers involved in a construction project. These bonds ensure that the contractor will pay any unpaid bills or debts related to the project. In the event of a dispute between the owner and contractor, the payment bond can be used as evidence in court.

Bail Bonds

Ohio Bail Bonds are a type of surety bond that is used to secure the release of an individual from jail. This bond guarantees that the accused will appear in court for their scheduled hearing, and it also ensures that any fines or other costs associated with the case will be paid by the bonded party. The surety company which issues the bond can pay out up to the full amount of the bond in the event that the accused fails to appear.

The cost of a bond can vary greatly depending on the type of project and its location. Generally, the higher the risk associated with a project, the higher the premium will be for obtaining a surety bond. Ohio bonds typically range from 1 to 15 percent of the total value of the contract or project.

To lower your bond premium, it is important to have a good credit score and a proven track record of successful project completion. Additionally, you may want to consider working with a surety agency that specializes in Ohio bonds as they may be able to get you better rates than other providers.



Working with an experienced surety agent can help make the process of obtaining a bond much easier and more efficient. By using an expert, you can ensure that your project will be backed by the best surety company in Ohio.

Whether you are looking for an Ohio Auto Dealer Bond, a Payment Bond, or any other type of bond, it is important to get the best value for your money. With Bellwether Insurance Agency, you can find professional surety agents who are experienced in navigating the complexities of Ohio's bonding industry. With our team of experts, you can rest assured that you will get the best deals on surety bonds in Ohio. 



Contact us today to learn more about how we can help your business save money and stay protected with a reliable bond.