YOUR SURETY PARTNER & ADVOCATES
Whether it’s a large project opportunity or negotiating increased bonding capacity, BRP’s surety group helps you navigate the surety landscape.
There are challenges and risks present in any market and a skilled surety expert is always preparing you for what lies ahead. It is this focus that allows us to ensure you have a surety program that supports your business plan today and into the future.
our competitive advantage
We extend our effort to build relationships with all key personnel and understand each contracting organization’s differentiators in their marketplace. This detailed and passionate learning process, born from a love of the construction industry, makes Construction Risk Partners a valuable asset to our clients and places us in the best position to advocate different and better surety credit terms effectively.
Our understanding of your industry’s dynamics and the concerns of surety underwriters, combined with our carrier relationships, position us to do more than just deliver your bonds and forward paperwork. Instead, BRP focuses on developing customized strategies that capitalize on opportunities, protect your interests, and benefit your bottom line.
core solutions & expertise
Directors & Officers Liability
Cyber Risk Management
Retirement & Wealth
frequently asked questions about surety
Whether it’s a large project opportunity or negotiating increased bonding capacity, BRP’s Surety group helps our clients navigate the surety landscape. There are challenges and risks present in any market and a skilled surety expert is always preparing you for what lies ahead. It is this focus that allows our group to ensure you have a surety program that supports your business plan today and into the future.
Since surety bonds are typically required by "obligee's" (federal, local, or state government organizations), a wide variety of businesses in the U.S. purchase surety bonds. However, the list below are the more common industries/company types that need to acquire surety:
- Construction contractors
- Auto dealers
- Freight brokers
- Credit services
- Mortgage broker and/or loan originator's
- Public insurance adjuster's
There are a total of 4 types of surety bonds, however, the two primary categories of surety bonds are contract bonds and commercial bonds.
- Contract bonds: these bonds hold 1 party in a contractual agreement responsible if the established and agreed upon terms are not met.
- Commercial bonds: business, organizations, and individuals need a commercial bond before the state may recognize them as a business entity - in order to receive a license from the state, a commercial bond is required.
The other 2 types of surety bonds are:
- Court bonds: this type of bond holds the bonded party liable (financially) if they fail to act in a court-required manner. These bonds are common in civil cases.
- Fidelity bonds: this type of bond protects businesses and their clients if an employee of that business acts unlawfully. Fidelity bonds are not required like the commercial and court bonds, but this type of bond is a great way to manage risk.
Surety (or a surety bond) can defined as a written agreement to gurantee payment, compliance, or performance of an act. There are typically three parties involved in surety bonds, including:
- Principal: the party (group, organization, or individual) that undertakes the obligation to complete and/or perform the agreed upon act. This party purchases the bond.
- Surety: the insurance (or surety) company that promises the obligation will be performed and completed. If the principal does not accomplish the agreed upon act, the surety is contractually liable for any losses.
- Obligee: the party (typically a local, state, or federal government organization) that requires the surety bond.