Surety Bonds
Build trust with every project
Discover the dependable protection of surety bonds from Gifford Carr, crafted to provide unwavering support for your business ventures and projects. You can trust in our expertise to secure your commitments, offering you the certainty that your interests are safeguarded at every step.
What is a surety bond?
A surety bond is a legally binding contract that is a form of insurance. It acts to ensure that a business fulfills the work it was contracted to do, with the bond’s guarantor stepping in to cover financial liabilities to the customer if the business fails to deliver.
Key considerations for surety coverage
Surety bonds are more like credit than an insurance policy. To better understand your business and the risk of insuring you, underwriters will often ask for:
- Financial statements, work on hand, accounts receivable and payable, to determine your financial stability
- The scope of the project and other work you have in progress
- The contractor’s credentials, including work history, expertise, and experience
Types of surety bonds we provide
Decades of experience you can trust
Our surety coverage solutions are tailored to meet various needs, offering both financial protection and operational confidence.
Options include:
- Agreement to Bond
- Bid Bonds
- Labour and Material Payment Bonds
- Lien Bonds
- Maintenance Bonds
- Performance Bonds
- Prequalification Bonds
Secure more contracts with surety bonds
When your contracts are bonded, clients will feel confident in choosing you as a partner. Learn more about how bonds can benefit your operations by connecting with a Gifford Carr surety broker.
Frequently asked questions
Find answers to common questions about surety bonds insurance.
What is the difference between surety bonds and insurance?
Surety bonds differ from insurance in structure and purpose. A surety bond is a three-party commitment that ensures the fulfillment of obligations. On the other hand, insurance is a two-party agreement that offers financial protection against specific risks.
What parties are involved in a surety bond?
The three parties involved in a surety bond are:
- The Principal: This party is responsible for obtaining the bond and fulfilling the obligation.
- The Obligee: This party is the one who needs the guarantee by the principal. This can be a company, a government agency, or an individual.
- The Surety: The guarantor of the bond. This party ensures that the principal makes payment.
Have more questions?
Contact us for more information.