Surety Industry to Nearly Double in Next Decade Due to Contract Surety
The global surety market is expected to grow to over $28 billion by the year 2027, up from $15.33 billion in 2018. The growth of nearly 100% is expected due to the imminent replacement of…
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Federal Contracts Without Bonding Requirements May Still Require Bonds
Federal construction contracts over $150,000 requiring payment and performance bonds should not be a surprise to federal construction contractors. But what happens when a federal contract over $150,000 is ambiguous as to whether it’s specifically…
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What is a License & Permit Surety Bond?
License and permit surety bonds are a specific type of surety bond required by federal, state, and local government agencies to ensure that a business stays in compliance with all applicable laws and regulations. Sometimes called…
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As the Economy Grows, More License & Permit Surety Bonds Needed
Non-farm employment rose by 312,000 in December 2018 with job gains occurring in health care, food services, construction, manufacturing, and retail, according to the U.S. Bureau of Labor Statistics. With more people employed, it means…
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Funds Control in Contract Surety
Construction projects and contract surety come bundled with an assortment of risks, ranging from inability to meet deadlines to poor workmanship to workplace injuries. But one of the biggest risks of a construction project isn’t…
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What is a Surety Company?
Surety bonds are either written by individual surety companies or subsidiaries or divisions of larger insurance companies engaged in the business of acting as a surety. These companies are authorized to do business by the state…
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Collateral Security: The Surety’s Power
The indemnity agreement is the foundation of the surety bond. It’s what separates surety from insurance: the agreement functions as a mechanism to have the principal repay the surety for any claims paid out to…
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How the Contract Surety Industry Functions
It’s tough to come up with an overarching description of the contract surety industry. Like the insurance industry its products so resemble, the industry is cyclical. The industry also has a long tail, meaning that a…
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What is Contract Surety Underwriting?
When you try to purchase a bid or performance bond, it has to go into “underwriting” before you can actually receive your bond. So what exactly is contract surety underwriting and what goes into the…
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