Surety Bond Insurance for Construction Projects

A surety bond is an undertaking from an insurance company (surety) to pay a specific sum to a beneficiary on certain specified conditions, such as company insolvency or contractual default.

Surety facilities are unsecured and treated as a contingent liability, and are thus off the balance sheet. The surety company will be placed alongside other unsecured company creditors by way of an indemnity agreement, allowing a company to make best use of its assets.

Surety bonds differ from bank guarantees in a number of ways and there are several benefits of using the product.

They are competitively priced and enable the client to free up working capital facilities from their bank. Most of the time, this product is conditionally worded to give the client the protection of the underlying contract conditions. With an underwritten second opinion from a third-party, the principal can complete the contract.


Surety bond insurance
Surety bond insurance

JLT’s team of surety specialists helps our clients with:

  • A dedicated team that deals solely in bonds and guarantees
  • Co-ordination of marketing with specialized knowledge of both jurisdiction and underwriters in relation to clients’ needs
  • Excellent relationships with all surety companies at the highest management level
  • Ability to negotiate significant facilities at the most competitive rates available
  • Longstanding experience of both broking and underwriting surety bonds. We use this perspective to save time and effort by matching the client to the appropriate underwriters who would be willing to provide support
  • Extensive knowledge of traditional bonding, structured finance bonding transactions, and facultative reinsurance surety solutions
  • We work regularly with banks, lawyers, and the private equity market.

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JLT Specialty USA, through its surety offering, provides tailored service solutions to our clients with surety bond requirements.

We focus not only on construction, house building, developers, and the facilities management sectors, but also on the need for surety bonds within a variety of other sectors, including waste, energy, and power, rail, telecommunications, water, retail, and more.

Our experts recognize the need for surety bonds and guarantees on an international basis.

Most notably, we operate in North and South America, Europe, and Australia, and set out to support our clients in whichever country they are based for contracts around the world.

We differentiate ourselves through our knowledge of bonding limits, pricing, indemnity, and conditions – to name a few.

Our success comes from focusing on sectors where we know we can make the greatest difference – using insight, intelligence, and imagination to provide expert advice and robust solutions. We build partner teams to work side by side with our clients, our network, and the market to deliver responses that are carefully considered from all angles.

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