Contractors & Trades Insurance
Surety Bonds Insurance
for Contractors & Trades
Many public contracts and commercial clients require a contractor's license bond or a performance/payment bond before awarding work. Surety bonds are not insurance — they're a financial guarantee — but they're often required to bid and win jobs, and our agents help contractors get bonded quickly.
Industry-Specific Insight
Why Contractors & Trades Businesses Need Surety Bonds Insurance
Many public contracts and commercial clients require a contractor's license bond or a performance/payment bond before awarding work. Surety bonds are not insurance — they're a financial guarantee — but they're often required to bid and win jobs, and our agents help contractors get bonded quickly.
Coverage Details
What Surety Bonds Insurance Covers
Key protections included in a surety bonds policy for contractors & trades operations.
FAQs
Common Questions from Contractors & Trades Businesses
What's the difference between a license bond and a performance bond?
A license bond guarantees you comply with licensing laws. A performance bond guarantees you'll complete a specific project as contracted. Both may be required depending on the job.
Does a surety bond protect my business if a claim is made?
Surety bonds protect the project owner, not the contractor. If a claim is paid, the surety company will seek reimbursement from you — which is why maintaining good work quality is essential.
Is a surety bond the same as insurance?
Not exactly — insurance protects the policyholder from loss. A surety bond protects the obligee (the party requiring the bond) if the bonded party fails to perform. The bonded business is expected to repay any claims paid by the surety. It's more of a credit guarantee than a traditional insurance product.
What is the difference between a performance bond and a payment bond?
A performance bond guarantees that a contractor will complete the contracted work. A payment bond guarantees that the contractor will pay their subcontractors, laborers, and suppliers. On public projects over a certain value, federal law (the Miller Act) requires both.
Complete Coverage
Other Coverages Contractors & Trades Businesses Commonly Need
A complete protection plan for contractors & trades operations typically includes several complementary coverages.
Contractors & Trades · Surety Bonds
Get Surety Bonds Coverage for Your Contractors & Trades Business
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