An issuer of a surety bond can buy bond insurance to guarantee scheduled interest and principal payments on the bond to its bondholders in the event the issuer defaults. Once the issuer buys bond insurance, its credit rating is then replaced by the insurer’s credit rating. Premiums are measured by the perceived risk of failure of the issuer and are paid out to the insurer in either lump sums or installments.
Being bonded gives issuers the capability to leverage company growth. With the increased stature of having the insurer’s credit rating, a company can feel more safe in taking risks to improve and grow the business. This is primarily true in both the construction and financial industries.
A bonded company can receive unbiased criticism from a credit professional and pursue advice in underwriting projects.
See below for some bonds that we handle, but are not limited to, the following:
Contact us today, and we can answer any questions you have about surety insurance.