Payment Bonds
What is a Payment Bond?
A payment bond guarantees payment to laborers, suppliers, and subcontractors in the event of the contractor defaulting. Typically, a payment bond is issued with the performance bond, termed a "Performance & Payment Bond".
Current Market: The surety market does not make drastic changes in general, but especially when it comes to underwriting performance and payment bonds. Bonding companies underwrite very similarly, which will not change for some time. About 9 years back, the surety industry was approving contractors for bonds they did not qualify for using traditional surety underwriting. Bonding contractors in excess of what they would typically qualify for resulted in record losses industry wide. The industry has since stabalized and will not likely have an appetite for business like the soft era for a long while.
Special Markets: Our agency is constantly reviewing what carriers are the best matches for our clients. Our wide array of bonding companies allows us to issue difficult to place bonds, as well as small to large contracts. Regardless of your situation, we have a surety that is right for you.
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