Surety Bonds

Surety bonds are purchased by professionals, contractors, and other businesses. Surety bonds offer financial security to governmental entities and private companies, safeguarding against losses stemming from non-compliance or unsatisfactory performance.

Think of surety bonds as a promise, guaranteeing protection if a business fails to deliver. It’s a contract between companies where one party (the surety) promises to finish the agreed-upon obligations of a second party (the principal) to a third party (the obligee). Unlike an insurance policy, a bond does not protect the buyer of the bond—only the principal party.

Does your next project need an extra line of defense? eSpecialty is a leading surety bond provider for small to medium-sized businesses. We can find better coverage outcomes for you at a lower cost.

Who needs surety bonds?

What types of surety bonds are there?

The main types of surety bonds are license & permit bonds and contract bonds. There are also a variety of bonds for special purposes, such as ERISA bonds, which are required by retirement plan fiduciaries. But for now, we’ll focus on the two major classes.

License & Permit Bonds

License & permit bonds essentially exist to protect the safety of others. Typically, a regulator will require this type of bond as a condition for granting a license or permit to engage in a specified service or activity. It’s an extra guarantee the service will comply with all applicable laws or regulations.

For example, an auto dealer bond is used to guarantee payment to the purchaser if a dealer sold them a car with a faulty alternator.

Great news–eSpecialty Insurance provides license & permit bonds through our online portal.

Contractor Bonds

Contractor bonds are used in construction to provide a financial guarantee related to performance. There are many different types, including:

Contractor license bonds. Required by government entities to operate as a licensed contractor.
Bid bonds. Used by a contractor when bidding on a project.
Performance & payment bonds. A bond tied to a contractor’s performance on a project.
Maintenance (warranty) bonds. A bond tied to the project’s durability after completion.

For example, in construction, the owner of a development will often require their general contractor to be bonded—and the owner or contractor may also require the subcontractors to be bonded. This protects the owner from financial loss if disruptions happen or the contractor fails to complete the project.

Securing a surety bond doesn’t have to be difficult

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How eSpecialty stands out

Competitive Options

Our extensive market reach provides competitively priced options and comprehensive, tailored solutions.

Customer Support & Service

Our knowledgeable, responsive team provides guidance and support throughout the policy lifecycle.

Risk Management Services

Comprehensive assessments and incident response planning help clients prevent and mitigate risks.

Smart Tools

Our technology streamlines the process, but does not eliminate the human component—talk to a real person if you need to!

Communication & Education

We keep you informed about emerging risks and provide regular updates on policy terms.

Independent

We work for you—not for the insurance companies. Experience the difference when you partner with eSpecialty.

How to Get a Surety Bond

Securing a surety bond can be simple (if you’re working with the right team). We’ve developed a streamlined process to provide multiple proposals from a range of competitive bonding companies for many types of bonds, giving you the best options.

Step 1

The first step is to get in contact with a surety bond provider—hey, that’s us!

Step 2

Next, we’ll integrate you into our online portal, where you can get rapid access to leading bond underwriters with transparency and efficiency.

Step 3

Finally, your expert will find out what’s best for your project and make sure you have what you need to get back to work—now you have a legal bond!

Consider eSpecialty Insurance your specialty coverage expert

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Note: Insurance policies are not all the same. Some policies are more comprehensive than others, and some policies provide broader coverage in specific areas. In addition, each insured may have different exposures and coverage needs. We encourage you to read your policy and consult with an insurance expert such as eSpecialty Insurance.