At Keyser we love fine print and taking care of people. We care for our customers like no one else. We pour over the details — reading all the fine print — so we can match you with the best carriers and coverage the industry has to offer. We create insurance solutions that leave you feeling safe to rethink risk.

Placing and servicing surety can be a complicated process. Our knowledge of the construction industry and experience working with contractors of various specialties and sizes will help us design the best surety program for you. We’re in this together, so we’ll educate you and keep you informed every step of the way.

How Surety Bonds Work

A surety bond involves three parties:

  • The principal (bond principal)  The person or business with an obligation to perform.
  • The obligee (bond owner)  The person, company or governmental unit requiring the guarantee.
  • The surety company (bond surety)  Who provides the bond to guarantee that the principal fulfills their obligation.

As long as the principal does what they say they’re going to do, the surety company has no role. If the principal doesn’t do what they say they’re going to do, the surety company has to meet the obligations. If this happens, the surety company is entitled to be reimbursed for losses and costs by the principal. Before a bond is written, the surety company may require the principal to provide an indemnity agreement from the business and also the personal indemnity of the principal.

Contract Bonds

Contract bonds serve as guarantees that all terms and provisions found in a contractual agreement will be fulfilled. They guarantee the performance and/or payment obligations under the written contract. There are three types of contract surety bonds:

  • Bid bonds
  • Performance bonds
  • Payment bonds

Who needs contract bonds?

  • Contractors
  • Subcontractors
  • Suppliers

Why are they needed?

Contract bonds guarantee that the party performing the work will do their job in accordance with all details and conditions of the written contract. Contract bonds can be required by the public sector or private sector.

  • Public sector jobs follow statutory requirements and are performed for state, local and federal governments.
  • Private sector jobs follow discretionary project owner requirements and are performed for private owners and general contractors.

The more the surety company knows about an applicant and their needs, the quicker the bond can be issued.

Ready to hear more?

Good. We love to talk about this stuff and are ready to help. Give us a call at 877.381.3570 or email

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David Viola

Executive Vice President

877.381.3570 x 447