Nationwide contract bonds

If you're a contractor, you need a stable company like Allied Insurance to stand behind you and your business. Our contract bonds provide financial security and construction assurance by guaranteeing a project owner that a contractor will perform the work and pay specified subcontractors, laborers and material suppliers.

We specialize in serving the needs of small to medium-sized contractors like electricians, carpenters, masons, plumbers, painters and landscapers. Our customers are usually supported by bank lines of credit, pay their bills promptly and have good customer references. While we can consider contract bonding for contractors that do up to $5 million projects, most are much smaller.

Contract bond types

We offer these kinds of contract bonds:

Bid bonds

Bid bonds guarantee that a contractor will enter into a contract, if awarded, and furnish the contract bonds required by the terms of a contract.

Performance bonds

Performance bonds guarantee faithful performance of the terms of a contract of construction or furnishing of supplies.

Payment bonds

Payment bonds guarantee payment for labor and materials used in the work that the contractor is obligated to perform under the terms of a contract.

Maintenance bonds

Maintenance bonds guarantee against loss due to defective workmanship or materials used in the completion of a construction project.

The contract bonding process

Before we issue a contract surety bond, we'll evaluate your business records and resources so we can assure the project owner that you have the capacity to perform the contract. Our unique underwriting approach emphasizes personal and business assets, which means we'll base our underwriting on the total financial strength of you and your business.

Part of our underwriting process includes calling your banker, suppliers and job references to learn more about your business practices. This background check lets us avoid some of the strict reporting requirements of other surety companies. And for the financial statements that we do need, we can often accept alternate forms of financial statements to make the process more convenient for you. 

Product, coverage, discounts, terms, definitions, and other descriptions are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in your individual contracts, policies, and/or declaration pages from Allied-affiliated underwriting companies, which are controlling. Such products, coverages, terms, and discounts may vary by state and exclusions may apply.

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Your Allied Insurance agent will work with you to design a policy with the right coverage for you and your business.

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