General Contractors Insurance
Surety Bonds Insurance
for General Contractors
Performance and payment bonds are standard requirements on public construction projects and many private commercial contracts. These bonds guarantee that you'll complete the project as specified and pay your subcontractors and suppliers — and getting bonded requires a thorough underwriting review of your financials and experience.
Industry-Specific Insight
Why General Contractors Businesses Need Surety Bonds Insurance
Performance and payment bonds are standard requirements on public construction projects and many private commercial contracts. These bonds guarantee that you'll complete the project as specified and pay your subcontractors and suppliers — and getting bonded requires a thorough underwriting review of your financials and experience.
Coverage Details
What Surety Bonds Insurance Covers
Key protections included in a surety bonds policy for general contractors operations.
FAQs
Common Questions from General Contractors Businesses
What's the difference between a bid bond and a performance bond?
A bid bond guarantees you'll enter into the contract if awarded. A performance bond guarantees you'll complete the work. A payment bond guarantees you'll pay subcontractors and suppliers. Public jobs typically require all three.
How do I get bonded for larger construction projects?
Bonding capacity is based on your net worth, working capital, and track record. We work with multiple surety markets and can help you build your bonding capacity over time.
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 General Contractors Businesses Commonly Need
A complete protection plan for general contractors operations typically includes several complementary coverages.
General Contractors · Surety Bonds
Get Surety Bonds Coverage for Your General Contractors Business
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