How much a $1,000,000 surety bond is really about is the premium you pay, not the bond amount itself. In Kansas, including Wichita, you do not pay one million dollars to buy a one-million-dollar surety bond. You pay a smaller yearly premium that is a percentage of the bond amount. For a $1,000,000 bond, premiums often fall somewhere between about 0.5 percent and 10 percent, depending on the bond type and the applicant’s risk profile. That means many people see prices from roughly $5,000 up to $100,000 per year, with some higher-risk situations running more.
Typical premium range for a $1,000,000 surety bond
Surety companies set the premium after they review your application. A larger bond brings more underwriting review, so rates can spread widely.
- Strong credit and low-risk bond types – often around 0.5 to 3 percent, or about $5,000 to $30,000 per year.
- Average credit or moderate risk – often around 3 to 5 percent, or about $30,000 to $50,000 per year.
- Lower credit or higher risk bond types – often around 5 to 10 percent, or about $50,000 to $100,000 per year.
- Special high-risk cases – can go above 10 percent, sometimes reaching about $150,000 per year.
What affects the price in Wichita and across Kansas
The bond size is fixed at $1,000,000, but the premium changes based on risk. These factors matter most.
- Type of surety bond – contract bonds for construction often rate lower than license, tax, or fiduciary bonds.
- Credit score – better credit usually leads to a lower percentage rate.
- Business finances – steady cash flow, good net worth, and low debt can reduce pricing.
- Experience and claims history – a long track record in your industry and no past bond claims helps.
- Collateral requirements – some applicants must pledge collateral, which may not change the premium but affects approval and terms.
Simple example
If a Wichita business qualifies for a 2 percent premium, the cost is about $20,000 for one year of coverage. If the rate is 6 percent because of credit or bond risk, the cost is about $60,000 for the year. The premium is paid to the surety company for the bond coverage and is not refunded at the end of the term.
In Wichita, Kansas, a $1,000,000 surety bond usually costs a yearly premium based on risk, often ranging from about $5,000 to $100,000, with higher risk cases costing more.