If you are a contractor working with government entities or large customers, you may be required to provide them with surety bonds. A surety bond is an extension of credit by the bonding company that guarantees your obligations. If you default on your contractual obligations, the surety can either pay damages or complete your contract. A surety bond is often used in lieu of a standby letter of credit from a bank.
Because of the range of businesses that need and use surety bonds, there are many types with a wide scope of guarantees available. Performance bonds guarantee that the work will be completed in accordance with the specifications of the contract. Payment bonds guarantee that any bills incurred by the contractor on the project will be paid. Supply bonds are simply performance bonds for supply contracts. In addition, there are various types of financial, license, permit, court and other obligations that can be guaranteed by surety bonds.
With more than 50 years serving the construction industry, AFG | A-M has helped thousands of businesses solve their surety problems. We listen to our clients so we can thoroughly understand the challenges you face, and then develop creative solutions for your specific situation. We can even help you develop a marketing plan to present to the surety industry to maximize your credit at competitive pricing.
To ensure that you get the strongest insurance protection at the best rates, AFG | A-M:
- Employs many of best bond experts in the region and offers access to key surety markets
- Understands the complexities of the construction industry
- Provides fast, timely turnarounds on bonds
- Maintains strong underwriting relationships and negotiates on your behalf to get bonds placed