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Michigan Public Construction Bonds

Michigan requires surety security when public building or work contract exceeding $50,000; performance and payment bonds required; the contract and statute set the obligations. Michigan’s separate public-works statute requires security protecting subcontractors, wages, labor, and materials on public buildings and works. 1,2

What Is Surety Bonds?

A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. Read the national Surety bonds guide.

Michigan Requirements

RequirementDetails
Public construction securityPublic building or work contract exceeding $50,000; performance and payment bonds required; the contract and statute set the obligations. 1

What to Watch for in Michigan

  • Check the Michigan Contract Trigger

    Michigan law triggers public-work security when public building or work contract exceeding $50,000. Performance and payment bonds required; the contract and statute set the obligations Ask the contracting agency to confirm whether your project falls under this rule and to state the bond penal sum in the bid documents. 1

  • Michigan Has Another Bond Rule for This Work

    Michigan’s separate public-works statute requires security protecting subcontractors, wages, labor, and materials on public buildings and works. Before binding the surety, match the required obligee, bond form, and covered obligation to this separate rule. 2

  • Match the Solicitation’s Bond Form

    The MCL 129.201 governs this statutory obligation, while the project solicitation identifies the obligee, filing deadline, and any bid-security details. Get the final form approved before the bid date and confirm that the named surety is authorized for Michigan work. 1,2

Who Regulates Insurance in Michigan

Michigan Department of Insurance and Financial Services

The Michigan Department of Insurance and Financial Services licenses agents, agencies and companies, supervises insurance business, and helps resolve complaints. You can use its state lookup or complaint service to check a license or raise an insurance issue. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 2.5% combined surplus-lines tax and regulatory fee on premium when Michigan is the insured's home state Michigan's Property and Casualty Guaranty Association is funded by insurers authorized to transact in the state; an insurer procured solely under Chapter 19 is expressly not considered authorized for that chapter. The surplus-lines policy must carry a notice that the insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. 6,7,8

Providers With Documented State Licenses

These providers publish a national listing for Surety bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Michigan. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 14

Questions to Ask Before You Buy in Michigan

  1. Which Michigan statute or procurement rule triggers this bond for our project, and what is the exact penal sum?
  2. Will the obligee accept another form of security, and who must approve that substitution in Michigan?
  3. What notice, filing, and claim deadlines should our subcontractors and suppliers track under this bond?

Surety Bonds in Michigan: FAQ

When does a Michigan public construction project require a surety bond? 1

Public building or work contract exceeding $50,000. Performance and payment bonds required; the contract and statute set the obligations 1

Does Michigan have another bond requirement beyond the public construction bond? 2

Yes. Michigan’s separate public-works statute requires security protecting subcontractors, wages, labor, and materials on public buildings and works. 2

Surety Bonds in Other States

Other Coverage in Michigan

Sources

  1. MCL 129.201. MCL 129.201; MCL 129.201. Accessed 2026-09-29.
  2. MCL 570.101. MCL 570.101; §§570.101-.103: bond requirement for public works and bond conditions. Accessed 2026-09-29.
  3. Department of Insurance and Financial Services. Department of Insurance and Financial Services; Official regulator and insurance oversight. Accessed 2026-09-28.
  4. Insurance License Lookup. Department of Insurance and Financial Services; State-designated producer/company search. Accessed 2026-09-28.
  5. File an Insurance Complaint. Department of Insurance and Financial Services; State complaint process and contact. Accessed 2026-09-28.
  6. Surplus Lines Licensee: Filing the Surplus Lines Taxes. Michigan Department of Insurance and Financial Services; DIFS current filing page: Michigan-home-state placements taxed at 2.5% combined tax and regulatory fee; separate fees charged to insured are not included in premium tax base. Accessed 2026-09-28.
  7. Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.7911(1)-(2), 500.7921(b): association membership tied to insurer authorized to transact; insurer procured solely under Chapter 19 is expressly not authorized for guaranty chapter. Accessed 2026-09-28.
  8. Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.1922 requires policy notice that insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. Accessed 2026-09-28.
  9. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  10. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  11. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  12. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  13. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  14. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  15. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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