What is a Contract Surety Bond?
A Contract Surety Bond is a written agreement where one party (the surety) obligates itself to a second party (the obligee) to respond to the default of a third party (the principal). A bond acts like an extension of credit, so underwriters evaluate risks like a bank evaluates a loan application.
Gallen Insurance can provide contract bonds from several leading surety companies. We work with you to determine your needs and negotiate the most favorable terms and rates. We offer different programs depending on your needs:
- Contract Bonds:
- Small infrequent bond requirements up to $350,000 individual and annual aggregate with minimal financial information required, based on your business experience and good credit history.
- Larger bond requirements where we work to develop stategic relationships between you and the surety company to ensure that you automatically have access to the limits that you need, when you need them and at the most favorable terms and most competitive rates.
- Special situations where your financial statement may not be sufficient to support bond limits required. We are able to arrange bonds using a funds management arrangement that you can get the bond that you need.
- Commercial Bonds:
- We provide a full range of commercial bonds that you may require to run your business, including license and permit, notary, employee dishonesty, ERISA, professional service and other miscellaneous bonds.
What we will do for you:
- Establish lines of credit for your bonding needs.
- Assist in maintaining ongoing relationship with the bond company with regular visits.
- Assist in establishing and maintaining required financial documentation.
- Review bond contract documentation.
- Issue bonds in an expeditious manner.
Kelly J. Swanger, CISR – Commercial Division Operations Manager
610.898.6519 | Email