Pennsylvania Public Construction Bonds

Pennsylvania requires surety security when public construction contracts over $5,000 covered by the Public Works Contractors’ Bond Law; payment bond generally 100% of the contract amount; some agency performance security ranges by contract value. For Commonwealth construction awards from $25,000 to $100,000, the Procurement Code sets performance security at at least 50% when the purchasing agency determines it is needed.

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.

Pennsylvania Surety Bonds Requirements

Requirement	Details
Public construction security	Public construction contracts over $5,000 covered by the public works contractors’ bond law; payment bond generally 100% of the contract amount; some agency performance security ranges by contract value. ¹

What Should You Watch for With Surety Bonds in Pennsylvania?

Check the Pennsylvania Contract Trigger
Pennsylvania law triggers public-work security when public construction contracts over $5,000 covered by the Public Works Contractors’ Bond Law. Payment bond generally 100% of the contract amount; some agency performance security ranges by contract value 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
Pennsylvania Has Another Bond Rule for This Work
For Commonwealth construction awards from $25,000 to $100,000, the Procurement Code sets performance security at at least 50% when the purchasing agency determines it is needed. 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 Act 385 of 1967, Public Works Contractors’ Bond Law 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 Pennsylvania work. ^1,²

Which Surety Bonds Providers Have Pennsylvania License Records?

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

TechInsurance
Insurance producer · checked 2026-09-28
Specialty Program Group LLC
TechInsurance’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. ¹⁵
TechInsurance arranges surety bonds for small businesses.

Who Regulates Insurance in Pennsylvania?

Pennsylvania Insurance Department

The Pennsylvania Insurance Department publishes state tools to check licensed producers, agencies, and insurers, and its Consumer Services Online portal accepts complaints about insurers, agents, brokers, and public adjusters. The department also oversees Pennsylvania insurance business and consumer services. ^3,^4,⁵

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint

Surplus-Lines Tax and Stamping Office in Pennsylvania

Reported tax rate. 3% of gross premium (2% for eligible surplus-lines risk retention groups) ^6,^7,^8,⁹

Pennsylvania charges 3% of gross surplus-lines premiums (2% for an eligible surplus-lines risk-retention group); the tax is in addition to premium, is borne by the insured, and is collected by the producer. For multistate risks, the 2025 Revenue instructions say all gross premiums are taxable when Pennsylvania is the home state, while Insurance Company Law §1621(d) says tax is levied only on premium reasonably ascribable to Pennsylvania risk; confirm allocation with your producer or the state. Surplus-lines coverage is excluded from the guaranty association, and qualifying large risks or exempt commercial purchasers may use distinct no-search routes, with the ECP route requiring disclosure and written request.

What Should You Ask Before Buying Surety Bonds in Pennsylvania?

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

Surety Bonds in Pennsylvania: Frequently Asked Questions

When does a Pennsylvania public construction project require a surety bond?

Public construction contracts over $5,000 covered by the public works contractors’ bond law. Payment bond generally 100% of the contract amount; some agency performance security ranges by contract value ¹

Does Pennsylvania have another bond requirement beyond the public construction bond?

Yes. For Commonwealth construction awards from $25,000 to $100,000, the Procurement Code sets performance security at at least 50% when the purchasing agency determines it is needed. ²

Sources for Surety Bonds in Pennsylvania

1
Act 385 of 1967, Public Works Contractors’ Bond Law. Act 385; Act 385 of 1967, Public Works Contractors’ Bond Law. Accessed 2026-09-29.
2
62 Pa.C.S. §903. 62 Pa.C.S.; §903: Commonwealth construction performance and payment security. Accessed 2026-09-29.
3
pennsylvania insurance regulator. State insurance regulator; PID official agency page and the search/consumer-help service map. Accessed 2026-09-28.
4
Pennsylvania Insurance Industry Search Tool Library. State insurance regulator; PID identifies consumer Sircon and detailed individual, business-entity, and company search tools. Accessed 2026-09-28.
5
File a Complaint with Your Insurance Company, Agent, Broker, or Public Adjuster. State insurance regulator; PID directs insurance complaints and questions to its Consumer Services Online portal. Accessed 2026-09-28.
6
RCT-123 Gross Premiums Tax - Surplus Lines Agents (2025). Pennsylvania Department of Revenue; Instructions p. 4, imposition/base/rate: 3% on gross premiums; insured bears tax, producer collects/remits; RRG exception 2% per statute. Accessed 2026-09-28.
7
Insurance Company Law, §1621. Pennsylvania General Assembly; Subsection (d): multi-state tax is levied only on premium reasonably ascribable to Pennsylvania risk. This differs from the 2025 RCT-123 instructions, which state all gross premiums taxable if PA is home state; see source tax. Accessed 2026-09-28.
8
Insurance Department Act, surplus-lines notice provision. Pennsylvania General Assembly; Policy legend: insurer is not licensed and surplus-lines insurance is NOT covered by Pennsylvania Insurance Guaranty Association. Accessed 2026-09-28.
9
Pennsylvania Insurance Company Law §§1604 and 1610 (40 P.S. §§991.1604, 991.1610). Pennsylvania General Assembly; Act 28 of 2011 §1610(a), (a.1): large-risk criteria and ECP disclosure followed by written request exempt from diligent-search requirements. Accessed 2026-09-28.
10
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
11
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.
12
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.
13
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.
14
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.
15
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.
16
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.

Pennsylvania Public Construction Bonds

What Is Surety Bonds?

Pennsylvania Surety Bonds Requirements

What Should You Watch for With Surety Bonds in Pennsylvania?

Check the Pennsylvania Contract Trigger

Pennsylvania Has Another Bond Rule for This Work

Match the Solicitation’s Bond Form