Performance and Payment Bonds vs. Subcontractor Default Insurance

We often get asked about subcontractor default insurance (SDI) and how it compares to bonding. Some people just call it “Subguard”. Subguard is Zurich’s proprietary product that was first introduced to the market, and that many contractors are familiar with that term. However, many insurance companies have entered this product field over the years. SDI […]

ESOPs and Surety Bonding

Continuity and succession planning are important to bond companies. There are many ways in which contractors can accomplish the transitioning of their business. One popular method we are seeing more of is the Employee Stock Ownership Plan (ESOPs). ESOPs are a tax-qualified retirement plan that invests in the stock of the company. They can be […]

California Broker of Construction Trucking Bonds

Several years ago, Senate Bill 1092 was approved, which revised the existing surety bond requirements for all construction trucking service brokers in the state of California. This bill was signed into law in September of 2012 and it went into effect in January of 2013.

Becoming a New York Home Improvement Contractor and Obtaining a License Bond

If you live in New York and want to repair, remodel, or build residential properties, you must obtain a home improvement contractor license. This is a required legal step. Acquiring a license is something that’s required by state authorities to guarantee that the contractors are fully qualified and that they are safe to do business […]

Freight Broker Bonds

It is required by the Freight Motor Carrier Safety Administration, or the FMCSA for short, for both freight forwarders and brokers to purchase a surety bond of $75,000 before receiving their freight broker license. These bonds are often referred to as the ICC broker bond or the BMC 84 bond. More information is available at […]

Reclamation Bonds

The reclamation bond is a type of performance surety bond. It’s required by BLM – the Bureau of Land Management – and it is required by some state government agencies that provide permits for specific mining operations.

California Contractors License Bonds

As of the date of this blog, there are over 280,000 contractors in the state of California. The public can search for actively licensed contractors at their site. With so many operating contractors, California like many states requires contractors to be licensed and provide a surety bond to protect the general public. A California contractor […]

Bonding Design Build Projects

The most popular method for construction project delivery is still design-bid-build. This is where a design professional and owner create plans for a project before sending the project out to bid. A contractor is then selected to build the project. However, that is changing. According to a study by FMI last year, Design Build projects […]

Service Contractors and Their Unique Bond Needs

Service contractors have a tough time when it comes to bonding. They fall into a gray area for most sureties. Are they contract or are they commercial? How do they go about getting a bond? First, what is a service contractor? This is a wide term for many fields and could include any of the […]