Performance Bonds

Once a contractor is awarded a project, they will require a performance bond. A performance bond ensures that a contractor will complete the project per the project’s contract.

This bond also guarantees financial compensation for the project owner. If a contractor fails to complete their job, the project owner can appeal to receive compensation by filing a claim against the bond. If the claim is awarded, the surety will compensate the project owner for the contractor’s failure to perform. However, it is important to note that the contractor is liable to pay back the full claim amount, plus additional expenses, to the surety.

Check out our Credit Only bonds if you need coverage under $750,000.