Surety bonds and insurance may seem similar and come from similar companies, but they are not the same thing, especially in contract surety.
With Colonial Surety, contractors are essentially able to establish a line of credit with Colonial to use to guarantee their bid, payment, and performance through Bid, Payment, and Performance Surety Bonds.
Bid Bonds, Payment Bonds, and Performance Bonds in contract surety are credit instruments in which the surety is indemnified for any defaults by the principal on their bid, payment of subcontractors or for materials, or performance. Insurance, on the other hand, does not require the insured to indemnify the insurer.
So where can you purchase bid and payment/performance bonds for a project?
Colonial offers the direct and digital way to obtain bid and payment/performance bonds as well as any other surety bonds. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond. The steps are easy — get a quote online, fill out your information, satisfy underwriting requirements, and enter your payment method. Print your bond from your office. It’s that simple!
Colonial gives you an easier way to manage your bid and payment/performance bonds online. Having your single and aggregate limits in writing allows you to update your work on hand and adjust your bonding capacity in real time.