Surety Bonding insurance Solutions
Your partner in business growth
Is your construction company ready to take on bigger projects?
At Christensen Group, we understand the critical role surety bonds play in your business's success. Our dedicated surety bonding team is committed to helping you:
Increase Your Bonding Capacity: We work with a wide network of surety markets to secure the right bonding capacity for your specific needs and growth goals.
Navigate State Requirements: Our experts stay up-to-date on the latest state regulations and requirements, ensuring your compliance and eligibility for bonding.
Maximize Your Potential: We provide strategic guidance to help you identify opportunities for growth and maximize your revenue potential.
Surety Bonding Insurance Frequently Asked Questions
Q: What are the risks of a surety bond?
A: A surety bond guarantees the performance of an underlying contract, protecting the Obligee from the risk of the Principal defaulting. If the Principal defaults, the surety uses its financial resources to safeguard the Obligee. In many contract bond situations, the Obligee is the project owner, and the Principal is the contractor who won the contract with a low bid on a public project.
Q: What is the difference between a surety bond and a letter of credit?
A: A surety bond and a letter of credit differ in several key ways. A surety bond involves the surety evaluating the "3 C's"—Capital, Capacity, and Character—of their client to extend surety credit. In contrast, a bank typically requires collateral to back a letter of credit or reduces the client’s available credit line by the letter's amount. Using surety bonds instead of letters of credit allows businesses to maintain full access to their capital and credit lines. Additionally, if there is a default, the holder of a letter of credit can claim the full amount, while in the case of a bond default, the surety can assert defenses available to the Principal
Q: Is a surety bond a bank guarantee?
A: No, a surety bond is not the same as a bank guarantee. A surety bond involves a General Indemnity Agreement, which states that if the surety pays a loss, the Principal must reimburse the surety. Unlike bank guarantees, there is typically no UCC filing or collateral backing the bonds in most cases.
Q: What are the liabilities of a surety?
A: A surety has no liability under the bond unless there is a default on the underlying contract or agreement. The client is not required to account for any surety exposure on their balance sheet.
Ready to take your construction business to the next level? Contact Christensen Group today to schedule a consultation and explore how our surety bonding services can benefit you.
Our experience in numbers
Our team placed over $500,000,000 in surety bonds last year alone.
Our team has over 100 years of experience working in the surety bond business.
We have relationships with 16 established companies specializing in surety bonds.
WHat our clients are saying
National Association of Surety Bond Producers
Christensen Group is a proud member of the National Association of Surety Bond Producers — an organization whose members specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds.
Meet your surety Bonding Team
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How to
get started.
We know that working with a new insurance agent can be overwhelming, so that's why we put so much emphasis on making sure you're getting value from the very first phone call.
Discovery
We’re sure you have a bunch of questions and hopefully we’re a good fit, but sometimes things don’t align - and that’s okay. A quick call is usually all we need to help both of us gain clarity around the prospects of working together. Take this first step.
Deep dive
Every business is unique — including yours — and there’s no “easy button” for giving proper guidance. We’ll take a deep dive into your business, your financials, and your exposures — at no cost to you — to provide the expert advice your business deserves.
Custom plan
Similar to prepping your house before selling, we create a custom plan to prep your business for securing the best insurance rates. We’ll work together to identify short, medium, and long-term action items that will help lock in the best rates now and for years to come.
Price & bind
Our thorough understanding of your business, combined with your custom plan, enable us to find the best policy and carrier fit for your business — at the best rates. We go to market - and go to bat - for you.
Speak with a surety bonding expert.
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