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SURETY BOND BASICS AND FREQUENTLY ASKED QUESTIONS


Most construction companies encounter a time when a "bond" is required to bid (and win) a project. While more common on public works projects, certain private owners may also require a surety bond to ensure the completion of a project at a given price. FEAR NOT! We've got you covered. In our opinion, equipping your company with a supportive surety team is an advantage that will separate your company from competitors. In fact, we've seen it happen with many of our clients. The following questions tend to surface through the bonding process. If you have specific questions, please reach out here and we'll be happy to assist.

  • What is a Surety Bond?

  • A Surety Bond is a 3rd party agreement between a contractor, a project owner, and a surety company. Similar to a "bank line of credit" in many ways, a surety company evaluates a contractor's ability and worthiness to complete a project. Many factors are taken into consideration including financial standing, credit, working capital, manpower, and past project history.

  • How much does a Surety Bond cost?

  • Surety bond pricing is based on the specific underwriting of the contractor and project in consideration. The Global Risk Surety Team leverages unique program expertise and senior management relationships to produce the most supportive bonding programs for contractors available at the lowest rates possible.

  • How quickly can I get a Surety Bond?

  • While decision-making in the surety industry has notoriously been a long, painful process, Global Risk prides itself on quick turnaround times due to our in-house underwriting authority partnerships with the most supportive surety companies in the construction industry. Have a project bidding now? Contact us here for immediate support.

  • How can a surety relationship help me grow my business?

  • It is important to understand that a Surety Bond is not a commodity - and is not guaranteed to be issued. This makes a contractor's relationship with it's surety broker and surety company extremely valuable - as not all contractors will be able to compete on projects requiring a bond. At Global Risk, we continually advocate for surety support for our clients. We have a knack for making the seemingly "impossible" happen. Here is a quick testimonial from a new client: “I worked with my prior surety agent for years and every time I called about a new bond they gave me the run-around. They were never able to get me the bonds my business needed. I recently contacted the Global Risk team about a large project I wanted to bid. The team listened to my specific situation and paired me with the most supportive surety partner I have ever worked with. Within 48 hours of receiving my financial package, they had an approval and issued a $1,000,000+ bond. You guys are miracle workers. Thank you!" -Tracy L., Central California

Whether you have decades of experience with bonded work and are looking for innovation, or are new to the bonding process, our experts at Global Risk are eager to listen to your unique situation and treat it as our own. Please contact us here to move forward with your bonding needs.

Global Risk is a highly specialized risk advisory and brokerage firm focused on global and national accounts, alternative risk finance and surety. Our team of experts have significant experience in captives, reinsurance and loss portfolio transactions across many sectors that include Oil & Gas, Staffing, Real Estate & Construction, Professional Services and Private Equity. For more information, visit www.globalriskcap.com. This document may not be reproduced, retransmitted, or distributed without prior written consent. © 2018 Global Risk, LLC. All rights reserved.


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