Let’s make sure you’re covered in the event your contractor fails to meet their obligations.
Performance & Completion Bonds
Common in industries like construction and real estate development. A performance bond is issued by one party to contract to the other party as a guarantee against the issuing party's failure to meet their obligations under the contract, or to deliver on the level of performance specified in the agreement.
In the case of a construction project, a performance bond may compensate the client if the contractor fails to complete the project. A payment bond insures against the risk of the contractor not paying their subcontractors, who could then sue the project's owner. There are three parties to a performance bond:
The Principal
The Principal is the primary entity or person who will be doing the work. Often this is a contractor or similar type of firm.
The Obligee
The Obligee is the company, individual or governmental entity who will be the recipient of the work. A city who will be having roadwork done by a contractor might have a performance bond to make sure the work is finished to specifications.
The Surety
The Surety is the financial institution providing the performance bond.
Interested in an insurance proposal at no obligation or cost?
Need more business insurance coverages?
General Liability Insurance | Business Auto Insurance | Workers' Comp Insurance
Contractors Equipment Insurance | Cyber Liability Insurance | Employment Practices Liability Insurance
Product Liability Insurance | Professional Liability Insurance | Commercial Property Insurance
Credit Insurance | Crime, Riots, and Civil Disorder | Cyber Crime
Business Interruption Insurance | Directors and Officers Insurance | Commercial Umbrella Insurance
Surety Bonds | Pollution Liability Insurance
Coughlin Insurance Services, Inc.
178 Myrtle Boulevard, Floor 2, Larchmont, NY 10538
Toll Free : (800) 542-0661
Tel: (914) 834-1234 Tel: (212) 593-0200
