Surety Bonds: What You Need to Know

While insurance is a common need for all business, commercial contractors
often have special needs in addition to their insurance coverages.
Whether you are a “typical” commercial general contractor or a specialty
contractor, many of the entities (especially public) you work for may require
a performance and payment bond. These bonds guarantee that the
contractor will perform the work according to the contract to completion and
pay all subcontractor and suppliers. These are typically referred to as
Contract Surety Bonds.

The most important thing to note is that bonds are not insurance products.
Unlike insurance whose premiums are based on expected losses, bonds
are underwritten similar to a bank loan and do not expect to pay a loss.

That’s where the O’Connor Insurance Group can help. We have
relationships with a diverse group of surety markets. We understand what
these markets look for when underwriting your company and can help
guide you through the process. Whether your needs are large or small. We
have the expertise to help you achieve your goals.