A surety bond for contractors helps bring peace of mind.
Surety bond solutions for contractors provided by Atlas Insurance.
Get protection for large investments with surety bond solutions for contractors.
We write bid, performance and payment bonds for contractors. To do this, we meet with you and understand who you are working for, how your project is financed, and what is required of you by the owner or prime contractor. We will ask you about your experience, financials, and plans for the future. Then we combine your information with our market knowledge and present it to various surety (insurance) companies to provide you with options.
What is a Surety Bond?
A surety bond is a three-party agreement among:
- The Principal – the party who has the obligation to perform under the terms of the contract or agreement (You)
- The Obligee – the party that requires and receives the protection of the bond such as a municipality, private owner, condo association, or higher-tier contractor (Your customer)
- The Surety – the third party (an insurance or bonding company) that guarantees the obligation of the principal to the obligee (Who we represent)
What are some common types of Bonds?
- Bid Bonds – Provide assurance that a contractor will honor their bid, enter into the contract and provide performance and payment bonds if awarded the job.
- Performance Bonds – Guarantees the contractor (principal) will complete the project according to the contract’s terms, specifications, and timeline.
- Payment Bonds – Guarantees the contractor will pay subcontractors, laborers, and material suppliers as required by the contract.
- License & Permit Bonds – Required by a government agency as a condition for getting a license or permit to operate a business.
What does a Bond cost (premium)?
The cost (premium) of performance and payment bonds depends on several factors but often ranges between 1-3% of the contract value:
- Contractor’s financial strength – working capital, net worth and debt levels.
- Credit history – both business and personal credit affect pricing, especially on bonds under $1,000,000.
- Experience – a proven history of completing similar projects reduces risk.
- Size and type of job – larger or riskier jobs may have higher premiums, especially those with extended durations or long-term warranties
- Bonding relationship – contractors with established surety programs often get the best rates.
What Are My Next Steps if I Need a Bond?
Request a call back or in person meeting by completing some basic info online and we will contact you.
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