Searching For a Surety Partner? Look For Someone Invested in Stability for the Years to Come
While insurance products exist to help an insured in the event of a loss, surety bonds are purchased so that a customer can guarantee their work on a particular project will be completed within a certain timeframe and at a reasonable cost.
Bonds support everything from a guarantee that a construction project will be completed on time to license and permit products that ensure a company will operate following any specific laws and regulations. If a surety customer is unable to complete these requirements, their surety partner will step in to cover any financial obligations.
“Surety is an indemnity product,” said Geoff Delisio, head of surety, Berkshire Hathaway Specialty Insurance (BHSI). “If our customers are unable to perform and they’re in bankruptcy proceedings, we are there to stand in the shoes of our customers.”
Governments often require surety bonds for businesses to become involved in a particular contract. If a contractor wants to bid on a project to build a highway, for example, they will be required to purchase a bond to guarantee the work will be completed.
Since businesses are often required by law to purchase surety bonds, it’s important they find a carrier partner that’s able to offer consistency and stability over the long term. Look for underwriters who thoroughly consider your business model, and who remain abreast of challenges like supply chain risks that could cause project delays.
To learn more about Berkshire Hathaway Specialty Insurance, please visit their website.