Surety Bond: Modifications, Cancellations and Renewal

Did you know that surety bonds can also be changed/modified, canceled, or renewed?

This article will help you glean useful insights in case you are in dire need of bond modifications, cancellations, and renewal.



Your existing surety bond can be modified through the issuance of a surety bond rider.

A surety bond rider is a Consent of Surety meaning a bond coverage extension to shoulder obligations for third parties that are conducting operations for the Principal.

Riders can be used to:

  • Modify the bond amount (increase or decrease)
  • Change the bond’s effective date
  • Change the bond number
  • Change the name/address of the Principal
  • Revise the bond form in a specific language

Sometimes, an Obligee may require a surety bond rider to be issued on their form. In increasing riders, an underwriting process is required. For decrease riders (may depend on the type of surety bond), the Principal can obtain an accepted copy from the Obligee that indicates they have received and agreed to the decreased surety bond amount.



Typically, there are four ways to cancel a surety bond:

  • Upon confirming with the Principal, the Surety sends a notice of cancellation that terminates the bond for a specific date, regulation or statute, or terms and conditions specified in the bond form.
  • The bond includes an expiration date and automatically is canceled upon expiration. This is called a Term Bond.
  • The Obligee sends a release letter stating that the bond can be canceled.
  • The Obligee returns the original bond to the Surety

Note: Cancellation requirements may vary based on the bond type.

What does a Surety need to cancel a bond, you may ask?

Construction Bonds:

  • Bid Bonds: The bid status is required to close a bid bond.
  • Performance/Payment Bonds: Once the Obligee requests a Consent of Surety to the last

payment, the obligation is already regarded as completed wherein the bond can be canceled. The bond may be subject to warranty guarantees that extend after contract completion.

  • Supply Bonds: Most sureties consider these as typically non-renewable and automatically cancels at the end of the specified contract term.

Court Bonds:

These judicial or fiduciary bonds entail a legal affidavit signed by a judge that releases the bond.

If allowed, the court can also return the originally filed bond.

License and Permit Bonds:

A Notice of Cancellation from the Principal or a release letter from the Obligee claiming that the bond is no longer required pursues its cancellation of the bond.



Some bonds have an obligation to be renewed every year or every other year as part of the licensing requirement. Renewal bonds and continuation certificates are often issued (typically license and permit bonds for commercial establishments, and court bonds for fiduciaries – guardian, executor, trustee, etc.).

These bonds include the same bond number as the initially posted bond. For instance, Kansas requires a new liquor license tax bond to be filed along with a new license application annually. This type of bond includes a full bond penalty available for each year every time it is issued.

Before committing to a continuation certificate or renewal bond, consult with your surety underwriter to ensure that he/she is in agreement with the renewal or if they need any additional information before the execution of the renewal.

If you need help with the Modifications, Cancellations, and Renewal of your bond, talk to a surety expert today!

Check out this Infographic!

"Surety Bond: Modifications, Cancellations and Renewals"

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