Fidelity, Commercial & Contract Bonds
From our offices in New York, there are three types of bonds or bond instruments we provide.
- Fidelity Bonds – Read More About Fidelity Bonds in our Crime Insurance Section
- Commercial Bonds – License & Permit Bonds, Court Bonds & Indemnity Instruments
- Contract Bonds – Often Called Contract Surety – Securing Construction Contracts
Contract Bonds are principally used in the construction industry to guarantee the performance of a contractor (the principal) for the benefit of the project owner (the obligee). The bond is not insurance, but a financial guarantee that supports the performance obligations of the contractor to the owner of a project. It may guarantee that the contractor will complete the job they have bid upon within the time frame, at the price, and at the level of specifications agreed to within the contract. As a financial guarantee, the surety or bonding company guarantees to step into the shoes of the bonded contractor should the contractor fail to deliver or perform upon the promises made in a contract. Which is why so much financial information is necessary to underwrite a construction performance or contract bond. Should the principal (the contractor) default on a bond and it is “called” by the Obligee or Owner, the surety will step in as mentioned. But, it’s important to understand that the surety will also seek to indemnify itself from the principal contractor; which is why letters of credit or other collateral assets are pledged to underpin a bond.
There are Several Different Parts to Contract Bonds or Contract Surety
- Bid Bond – this is usually the first step of the bonding relationship between the contractor and the owner which guarantees that the contractor, if selected in the bidding process, will undertake the construction contract at the terms and conditions for which they had bid.
- Performance Bond – this is the “meat” of the bond which will guarantee the faithful performance of all of the project’s terms and conditions; on time, on budget, at specification.
- Payment Bond – This is the last part of a Contract Bond which guarantees that the contractor has or will pay all of their sub-contractors and suppliers on the project to prevent the project from having liens placed on it.
Contract Surety underwriting is complicated but from New York, The Coyle Group has the experience and market access to help you succeed and obtain the bonding you need to grow your contracting business.
Questions About Bonds? We Can Help. Contact Us in New York for Answers
Since 1929, The Coyle Group has been serving businesses in the New York area with fidelity, commercial and contract bonds in the Rockland County communities of: New City, Nanuet, Haverstraw, Pearl River, Stony Point, Suffern, West Nyack, Congers, Valley Cottage, Nyack, Orangeburg, Blauvelt, Palisades, and Chestnut Ridge; the Orange County communities of: Goshen, Pine Bush, Middletown, Newburgh, New Windsor; the Westchester County communities of: White Plains, Yonkers, New Rochelle, Bedford, Elmsford. And in New York City – Manhattan, Bronx, and Brooklyn.
For more information on bonds, feel free to reach out to us in New York by calling 845-634-3606.