Cost Surety Bond: What is this Surety Bond?

A Cost Bond is a plaintiff surety bond that guarantees that the plaintiff (nonresident of the jurisdiction) will pay all the court expenses in the litigation. A cost bond (or bond for costs) is essentially a promise made by a plaintiff nonresident it would pay the cost of the legal action.

It is obtained by a party, usually a nonresident plaintiff, as a guarantee of the payment of any costs awarded against the plaintiff.

When a nonresident purchases a Cost Bond, he or she is telling the court of his or her willingness to pay for the litigation expenses. These expenses include, but are not limited to, attorney fees, deposition fees, paralegal fees, court fees, and private investigation fees.

Depending on the type of legal action, the list of expenditures could vary. The Cost Bond is a guarantee to the court that the plaintiff will be paying for all these expenses at the conclusion of the litigation.

How Much Does a Cost Bond Cost?

The cost of this bond is a percentage of the total bond. Computing the amount of the premium, of the actual amount you pay for the bond, depends on the applicant’s credit history and the type of legal action is undertaken. Those with a good credit score and strong financials will pay the lowest percentage.  If you have a poor credit history, then expect to pay a higher premium.  In some cases, you may not get approved at all.

Do you need a Cost Bond? Surety Bond Authority can help you with all your bonding requirements. Give us a call at 800-333-7800 and let’s start the process for your Cost Bond now. Our professional and highly-skilled personnel can get you the Cost Bond that you need.


More details about Cost Bonds 

When a person files a legal action in a state court where he is not a resident, the court usually requires a Cost Bond. This type of bond is required to nonresident individuals, corporations, partnerships, and other business entities which file legal action in state courts.

The nonresident is the Principal (one how purchases the bond) in this type of bond while the court is the Obligee (one who benefits from the bond). The Cost Bond guarantees that the principal will shoulder all the court costs for the legal action. However, some states also require state residents to post a similar bond.

Fortunately, the courts often impose a low penalty on these types of bond. But some courts require an open form that spells out no penalty amount of dollar cap. Underwriters should estimate the cost that might be incurred in the legal action when the court requires an open bond form. The surety's potential liability can be significant if the bond also guarantees the costs for an appeal.


About our company:

Our founder and CEO, Greg Rynerson, has more than 25 years of experience in the bonding and insurance industries. He spent his entire professional life executing bonds at the state and federal level for his clients.

We have the resources and knowledge to get you the Cost Bond you require and need, and we have made the process as simple as 1,2, 3 to make it as painless as possible for you. Our expert staff will be more than willing to use all our company resources at your disposal to quickly process your bonding requirements.

We also have an online platform to make the process fast and very easy. You can visit our website at or e-mail us at, and we will respond to your queries as quickly as we can.

Learn more about Cost Surety Bonds by watching the video below.

Check out this Infographic!

Have a better view of Cost Surety Bonds through this infographic.

Cost Surety Bond Infographic
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