Contract
The underlying contract and obligation supported by the bond.
Decisions & balance sheet
Surety Bond
Support contractual obligations without replacing careful performance management.
Surety Bond addresses defined bid, performance, advance-payment, maintenance or other contractual obligations.
Introduction
What is Surety Bond?
Surety Bond is commonly considered by contractors, suppliers, project owners and businesses required to provide contractual security. It can address defined bid, performance, advance-payment, maintenance or other contractual obligations.
What it protects
What can the policy protect?
The scope of Surety Bond should clearly define the insured interests and the protection required.
Limits and time periods
The bond amount, validity period and contractual milestones.
Surety applications
Where a surety bond may be required
These examples show common contractual situations in which a surety bond may be requested. The bond terms determine the obligation supported.
Bid commitment
A project owner requires assurance that a contract bid has been submitted in good faith.
Contract performance failure
The contractor does not complete the agreed work on time or to the required contractual standard.
Non-payment of subcontractors or suppliers
Subcontractors or suppliers providing labour, services or materials are not paid as required.
Programme context
Where this cover fits
Industry applications
The role of the cover should reflect the operation, contractual responsibilities and potential severity of loss.
Independent financial lines review
Review Surety Bond with Talisman.
Share your current wording, renewal terms or information about the requirement. We will help identify the practical next step.
Illustrative information only. Coverage, availability, limits and terms depend on the risk profile, insurer approval and final policy wording.