Search
 
Best Practices

When do construction firms need subcontractor bonds?

Surety bonds are vital to the construction industry and can be a profit center for insurance agencies.

By Darrel Lamb | July 14, 2021 at 12:00 AM
Insurance agents and brokers with construction clients should be aware of the additional need for subcontractor bonding. Below are five instances when the surety may require or strongly urge that a general contractor have their subcontractor bonded. (Photo: Vitalii Vodolazskyi/Adobe Stock)

For many property and casualty agents, the contract surety business is an enigma. Maybe it’s because surety isn’t written like a commercial lines policy. Or it’s the arcane language we use, like referring to project owners as “obligees.”

One thing is clear, though: Surety bonds are vital to the construction industry, and they can be a profit center for your agency.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.