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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.

Contract (construction) bonds — bid bonds, performance bonds, and payment bonds for construction projects
License and permit bonds required by state or local governments for business licensing
Court bonds required during legal proceedings
Fidelity bonds protecting clients against dishonest acts of your employees
Notary bonds and other fiduciary bonds required for public roles
Federal, state, and municipal contract bid requirements

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.

We serve general contractors businesses in:

General Contractors · Surety Bonds

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