Surety Bonds for Contractors
Surety bonds — performance bonds, payment bonds, and bid bonds — are required on public works projects, government contracts, and increasingly on large private commercial projects. Unlike insurance, bonds are a financial guarantee: if you default, the surety pays, and you are obligated to reimburse the surety. We place surety bonds that meet project-specific requirements and integrate with your overall contractor insurance program.
What it covers
- Performance bonds — guarantee to the project owner that you will complete the project per contract
- Payment bonds (Miller Act and Little Miller Act) — guarantee that subcontractors and suppliers will be paid
- Bid bonds — guarantee that you will enter into contract and provide performance and payment bonds if awarded
- Subdivision bonds — guarantee to municipalities that public improvements will be completed
- License and permit bonds — required by states and municipalities as contractor licensing conditions
- Maintenance bonds — guarantee correction of defects identified during the maintenance period after project completion
Who it's for
- General contractors bidding on public works projects requiring bid, performance, and payment bonds
- Contractors working on federally funded projects subject to the Miller Act
- State and local government contractors subject to Little Miller Act bonding requirements
- Private project contractors whose contracts specify surety bond requirements
- Contractors pursuing large commercial or institutional projects where owners require bonded performance
Why CCA
- Surety placement coordinated with your insurance program — one broker relationship for your complete risk management program
- Access to surety markets that write contractor bonds for various credit and financial profiles
- Bond forms reviewed against project contract requirements before submission — no rejected bonds
- Bond capacity analysis — we assess what bonding capacity your financial profile supports and how to expand it
- Aggregate program management for contractors carrying multiple bonded projects simultaneously
Common questions about surety bonds
Insurance is a two-party arrangement where the insurer pays covered losses without a right of reimbursement from the insured. A surety bond is a three-party arrangement where the surety (bonding company) guarantees the contractor's performance to the obligee (project owner). If the contractor defaults, the surety pays — but the contractor is obligated to repay the surety. Bonds are financial guarantees, not risk transfer products.
Surety bond premiums are typically 0.5% to 3% of the bond amount, depending on the contractor's financial strength, credit profile, bonding history, and the size and complexity of the project. A $1M performance bond might cost $5,000 to $30,000. The surety evaluates the contractor's capacity to perform — financial statements, credit, backlog, and experience are all factors.
Sureties typically require: two to three years of financial statements (preferably CPA-prepared), current work-in-progress schedules, a personal financial statement from the principals, and a description of the project and your relevant experience. For larger bonds, a CPA review or audit of financial statements may be required. We prepare you for the surety underwriting process and identify which surety markets match your financial profile.
Yes. Contractors Choice Agency holds licenses in all 50 states and writes contractors professional liability programs coast to coast. NPN 8608479.
We work with AM Best A+ rated specialty carriers with proven appetites for construction professional liability risks. Carrier selection depends on your specific operation, project types, professional service scope, and state.
Contact us immediately at 844-967-5247. We provide 2-hour claims response during business hours and will guide you through notifying your carrier, preserving documentation, and protecting your coverage position from the first day of a claim.
Yes. Monthly payment plans are available through most carriers and premium finance options. We walk you through payment options when presenting your professional liability quote.
Founded in 2005 — over 20 years insuring specialty contractors. Contractors professional liability programs have been a core focus throughout our history as contractor project delivery methods have evolved.
Basic information needed: business name, years in operation, annual revenue, project types and sizes, professional service scope (design-build, CM, design-assist, value engineering), states you work in, current E&O coverage if any, and claims history for the past five years.
Yes. New contracting firms can obtain professional liability coverage, though the retroactive date will be the policy inception date with no prior acts coverage initially. Coverage builds as you renew. We explain how this affects your protection and what to watch for in your first few years.
We are experienced with project-specific professional liability requirements — minimum limits, project-specific endorsements, additional insured language, and retroactive date provisions. Tell us what your contract requires and we will confirm your policy meets those requirements before binding.
Yes. Professional liability coverage typically applies wherever you perform professional services. Workers compensation requires separate state filings where you have employees, but professional liability follows your operations nationwide.
844-967-5247, Monday through Friday 8am to 5pm Mountain Time.
12220 E Riggs Road Suite #105, Chandler, AZ 85249. We serve contractors nationwide by phone and online.
josh@contractorschoiceagency.com. We respond to professional liability quote requests within 15 minutes during business hours.
Yes. Submit the online quote form at contractorsprofessionalliabilityinsurance.com/quote and we will respond within 15 minutes during business hours. For fastest service, call 844-967-5247 directly.
Yes. We help manage certificates of insurance for your subcontractors and issue certificates to project owners as required by your contracts — including professional liability certificates with the specific language and limits your project owner requires.
Pair it with related coverage
Get Your Contractors Professional Liability Insurance Quote
E&O, professional liability, and design-build coverage for general contractors, construction managers, and specialty firms — nationwide.