Surety Insurance

Whether your project is smaller-scale construction or the development of major national infrastructure, surety credit is one of the most important credit facilities available to support – and protect – your business.

JLT Specialty USA’s surety team develops innovative surety solutions for clients in the construction and commercial sectors, addressing the most complicated bonding issues.

Our team possesses extensive technical background, combined with years of specialized broker experience, to ensure that your bonding program provides the competitive advantage needed to maximize your financial success.



Surety insurance

Few partnerships are as vital as the one between your business and your surety partners. JLT’s team of surety specialists well understands this dynamic. Our approach takes a proactive stance on the key elements of your surety relationships, including:

  • Negotiating with markets to deliver the most favorable terms & conditions – work program, carrier strength, rate and indemnity
Surety insurance
  • Maintaining outstanding relationships with top-tier surety companies at the local, national and global levels – we engage leading surety professionals to address the situation affecting your business
  • Fostering a strong relationship between our clients and their surety partners – ensuring there are no surprises
  • Providing 24/7 online access to comprehensive bond reports customized to your requirements
  • Establishing and maintaining 'stand-by' surety capacity to assure our clients of uninterrupted support.


Surety bond – a written contract in which one party guarantees a second party’s performance to a third party for the second party’s failure to fulfil an obligation

Principal – the bonded person or organization that has the duty to perform in some way for the benefit of the obligee

Obligee – the party to whom a bond is given and who is protected against loss. Generally, the party that can make a claim

Surety – the party to a surety bond who answers to the obligee for the principal’s failure to perform as required by the underlying contract, permit, or law.

Depending on the magnitude and scope of the bond program required and access to the requisite underwriting information needed, JLT’s team of specialists can establish a working surety program within one week.

JLT offers same-day service, pending when a properly documented request is submitted.

To complete a surety program submission, JLT requires the following:

  • Last two year’s audited financial statements
  • Most recent interim financial statement
  • Most recent investor/lender presentation
  • 3rd party evaluation of assets (reserve report, etc.)
  • Available financial projections
  • Detailed list of outstanding bonds; and
  • Applicable underlying contracts

A copy of the underlying contract, bond form(s), supporting detail regarding bond penal sum(s), description of the work to be completed, and a financial update (if applicable).

Collateral requirements are dependent upon a number of underwriting factors related to the specific underwriting case. Collateral is typically required in a letter of credit or cash escrow format, approved by the requiring Surety.

Surety rates are dependent upon a number of underwriting factors and range from 0.1% to 3%+.

A document that defines the respective rights and obligations of the Indemnitors and the Surety. A key component of the indemnity agreement is the Principal’s guarantee to reimburse the Surety for every claim; demand; liability; expense; loss; cost; charge; adjusters’ and consultants’ fees. The agreement also guarantees the Principal’s reimbursement of fees of attorneys retained by the Surety on a solicitor and own client basis, bills for costs for claimants’ attorneys, judgments and any and all liability sustained or incurred by the Surety by reason of having executed or procured the execution of bonds.


Surety insurance

JLT’s approach is based upon a fundamental understanding of the industry – and our clients’ unique risk profiles, current bonding needs, and future business objectives.

Surety insurance

Our success in advising clients through the surety process and structuring solutions that limit volatility to business operations is unique in that it is focused on long-term partnership and program stability.

We provide security structures, placement, and ongoing service to support our client’s long-term bond program requirements, rather than simply satisfying an immediate, transactional need.

Case Study

Collateral-free program

PortCo, a private equity backed company, operates an extensive network of waste disposal facilities, supplemented by several smaller satellite processing facilities.

Having worked with a competing surety broker on an aggressively priced program, PortCo approached JLT for an assessment of the program and advice on more effective, specialized risk brokering.

Shortly after JLT’s initial meeting with PortCo, the incumbent broker received notice that PortCo’s surety was requiring 100% collateral to support a newly acquired asset, as well as the existing bonded assets. PortCo then engaged JLT to market the program using JLT’s technical broking strategy.

JLT developed a narrative outlining PortCo’s unique credit and asset-based underwriting factors to support a case that mitigated probability of surety loss. JLT submitted the narrative and supporting documentation to select market partners who specialized in PortCo’s industry.

JLT’s efforts resulted in a collateral-free program with an attractive rating structure, and provided capacity for growth supported by the leading waste surety underwriter in the market.

The bonds procured by JLT on behalf of PortCo have aided the organization in becoming the largest and leading player in the industry.

Read our latest insights