Property & Casualty — Commercial
Surety Bonds
Give clients, partners, and regulators confidence in your commitments.
A surety bond is a three-party agreement — the surety (insurer), the principal (your business), and the obligee (the party requiring the bond) — that guarantees the principal will fulfill a specific obligation. Unlike insurance, a surety bond is not designed to cover your losses; it protects the obligee and assures third parties that your business will perform as promised. We work with top-rated surety markets to place bonds across every industry and obligation type.
What's Covered
- Contract bonds — bid, performance, payment, and maintenance bonds for construction projects
- License and permit bonds — required by states, municipalities, or agencies to obtain a license
- Court bonds — appeal, fiduciary, guardianship, and probate bonds
- Fidelity bonds — protection against employee dishonesty and theft
- Public official bonds — required for elected or appointed government positions
- Customs and federal bonds — required for import/export and federal contracting
- Notary and mortgage broker bonds — state-mandated professional bonds
Why It Matters
Many contracts, licenses, and regulatory approvals cannot proceed without a bond in place. Contractors bidding on public projects must post bid and performance bonds as a condition of contract award. Auto dealers, mortgage brokers, and freight brokers face licensing requirements that mandate surety bonds. For clients and public agencies, your bond is proof that you stand behind your work — and that there is financial recourse if you don't.
Common Questions
Is a surety bond the same as insurance?
No. Insurance protects the policyholder. A surety bond protects the obligee — the party requiring the bond. If a claim is paid under a bond, the surety will seek reimbursement from the principal (your business). Bonds are financial guarantees, not risk transfer mechanisms.
How is my bond amount determined?
The bond amount (called the penal sum) is set by the obligee — the government agency, project owner, or contract counterparty requiring the bond. It represents the maximum amount the surety would pay in a claim and does not equal your premium.
What affects my bond premium?
Bond premiums are based on your credit score, financial strength, years in business, and claims history. Well-established businesses with strong credit often pay 1–3% of the bond amount annually. We'll help you present your business in the best light to secure the most favorable terms.
Ready to get covered?
Talk to one of our advisors about the right policy for your situation. No pressure, no jargon — just honest guidance.