Encroachment Bonds

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Encroachment Bond Guide

Some states and municipalities require contractors to file encroachment bonds before performing private construction work near public property such as highways, sidewalks or power line systems. 

What Is an Encroachment Bond? 

An encroachment bond is a type of right of way (ROW) bond that holds contractors responsible for damage done to public property. It also ensures contractors follow all regulations and guidelines about the public right of way.

How to Get an Encroachment Right of Way Bond

SuretyBonds.com provides the fastest and easiest bonding process for ROW contractors:  

  • Step 1: Submit your application online 24/7. 
  • Step 2: Get your free quote.
  • Step 3: Pay for your bond. We offer quick, easy and convenient online payment options 24/7.

That’s it! Join thousands of satisfied clients by applying today. 

How Much Do Encroachment Surety Bonds Cost?

Encroachment bonds for coverage equal to or less than $25,000 do not require underwriting. Applicants can get instant approval to purchase a bond for a cost of 1% or less of the bond amount.

Bond amounts greater than $25,000 require underwriting, and applicants can expect to pay premiums starting at 3% of the bond amount

The cost of your encroachment bond will depend on the following factors: 

  • Bond amount 
  • The state/municipality requiring the bond
  • Risks associated with the project
  • Personal financial credentials, in some cases

Applicants with poor credit will need to provide additional financial documentation. Encroachment bonds are not eligible for financing. 

How Do Encroachment Bonds Work? 

Similar to a contract bond, encroachment bonds are a form of consumer protection. They guarantee that work near a public right of way is completed within the parameters of municipal ordinances and the construction permit. 

If the bonded contractor breaches the contract terms, the surety provider guarantees financial compensation to the state or local municipality for any damages. 

How Fast Can I Get My Bond? 

With SuretyBonds.com, you can get your encroachment right-of-way bond the same day you submit payment. You'll instantly receive a digital bond form via email. 

Most states and municipalities require physical document sets with wet, original signatures and raised seals. In this case, we'll ship your bond documents. You can select overnight shipping to expedite delivery.

Call 1 (800) 308-4358 to talk with a Surety Expert