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M. BURR KEIM AGENCY · License & Permit Surety Bonds · Reviewed November 2026

Highway Encroachment and Right of Way Bond

A highway encroachment or right of way bond is a surety bond required when a contractor performs work in a public street, highway, or right of way. It protects the public authority if the contractor fails to complete the work, restore the area, or meet permit conditions.

Apply for This Bond Online How to Apply Questions

At a glance

Product
Highway Encroachment and Right of Way Bond
Category
License & Permit Surety Bonds
Required amount
The public works department or local authority sets the amount, often based on the scope of work in the right of way, the cost of restoration, or a standard schedule. Confirm the exact amount and obligee with the agency issuing the encroachment or right of way permit.
Online issue
Instant issue up to $25,000 for contractors. With acceptable credit, instant issue is available above $25,000 up to $100,000. If the permit requires a specialized bond form or a higher amount, the application may need underwriting review.
Term
The bond term is usually tied to the permit or project, and it may be a one-year term or a term that runs until the work is accepted and the right of way is restored. Confirm the required term and any warranty period with the permitting agency.

Who needs a highway Encroachment and Right of Way Bond?

  • Contractors installing utilities, driveways, sidewalks, or other improvements in a public right of way.
  • Utility, paving, and excavation contractors required to file a bond with a state or local transportation agency.
  • Businesses whose permit requires a bond before work can begin in a street, highway, or public easement.

Why is a highway Encroachment and Right of Way Bond required?

Public works departments use encroachment bonds to ensure that work in the right of way is completed properly and that the street, highway, or public property is restored. If the contractor fails to perform or leaves a hazardous condition, the bond can respond up to the bond amount.

The bond is required as a permit condition and does not replace general liability insurance, workers’ compensation, or the contractor’s obligation to comply with traffic control and restoration requirements.

How much bond do I need?

The public works department or local authority sets the amount, often based on the scope of work in the right of way, the cost of restoration, or a standard schedule. Confirm the exact amount and obligee with the agency issuing the encroachment or right of way permit.

Instant issue up to $25,000 for contractors. With acceptable credit, instant issue is available above $25,000 up to $100,000. If the permit requires a specialized bond form or a higher amount, the application may need underwriting review.

Bond amount is not the premium. The required amount is the maximum the surety could pay under the bond. The premium you pay is a separate charge based on the bond amount, the risk, the term, and your credit. The online application shows the premium before you bind coverage.

How much does a highway Encroachment and Right of Way Bond cost?

Premium depends on the bond amount, the permitting authority, the project term, and the applicant’s credit. Encroachment bonds are usually inexpensive relative to the value of the work. Apply online for the current premium.

How to apply online

  1. Confirm the bond amount and obligee. Use the amount and legal name of the agency, court, client, or government entity that requires the bond. The obligee name must match the requiring party’s records.
  2. Gather the application information. Have the legal business or entity name, address, license or case number, ownership information, and the required bond amount ready.
  3. Start the CNA Surety application. Use the online application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency.
  4. Pay the premium and bind coverage. If the bond is eligible for instant issue, the application will show the premium and let you complete the purchase online. Otherwise, the surety will review the application and contact you if additional information is needed.
  5. File the bond. Provide the issued bond to the agency, court, client, or government entity that requires it, and keep a copy for your records.
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Highway Encroachment and Right of Way Bond term and renewal

The bond term is usually tied to the permit or project, and it may be a one-year term or a term that runs until the work is accepted and the right of way is restored. Confirm the required term and any warranty period with the permitting agency.

Good to know

  • Have the permit number, project description, bond amount, and the legal name of the transportation agency or municipality ready before applying.
  • If the project involves several jurisdictions, you may need a separate bond for each permitting authority.

Highway Encroachment and Right of Way Bond questions

A highway encroachment or right of way bond is a surety bond required when a contractor performs work in a public street, highway, or right of way. It protects the public authority if the contractor fails to complete the work, restore the area, or meet permit conditions.

Contractors installing utilities, driveways, sidewalks, or other improvements in a public right of way. Utility, paving, and excavation contractors required to file a bond with a state or local transportation agency. Businesses whose permit requires a bond before work can begin in a street, highway, or public easement.

Premium depends on the bond amount, the permitting authority, the project term, and the applicant’s credit. Encroachment bonds are usually inexpensive relative to the value of the work. Apply online for the current premium.

The public works department or local authority sets the amount, often based on the scope of work in the right of way, the cost of restoration, or a standard schedule. Confirm the exact amount and obligee with the agency issuing the encroachment or right of way permit. Instant issue up to $25,000 for contractors. With acceptable credit, instant issue is available above $25,000 up to $100,000. If the permit requires a specialized bond form or a higher amount, the application may need underwriting review.

Apply online through CNA Surety using the application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency. Complete the application, pay the premium online if the bond is eligible for instant issue, and then file the bond with the agency, court, or client that requires it.

A bond is commonly required when a contractor performs work in a public street, highway, or right of way under a permit. The permitting agency decides whether a bond is required and sets the amount and form. Utility installations, driveway improvements, and excavation work are common examples.

The bond usually remains in force for the permit or project term, and some agencies require it to continue through a restoration or warranty period. Confirm the required term with the permitting agency before applying.

Online application and important note

Bond requirements, forms, amounts, and fees are set by the requiring agency, court, or carrier and can change. This page is general information, not legal advice. Confirm the current requirement with the agency, court, client, or your attorney before applying. M. BURR KEIM AGENCY is an insurance and surety bond agency; the bond or policy is issued by the carrier named on the document.