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Connecticut Public Works Surety Bonds

Connecticut generally requires a payment bond for covered state or municipal public-building and public-work contracts exceeding $100,000, subject to matching general-bid, sub-bid and consultant exceptions. A contracting officer may separately require performance security, with statutory lower limits on when that extra requirement may be imposed. 1,2

What Is Surety Bonds?

A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. Read the national Surety bonds guide.

Connecticut Requirements

RequirementDetails
Covered public-work payment bondA public building or public work contract for the State or a municipality exceeding $100,000 generally requires a bond equal to the contract amount for people supplying labor or materials. 1
Additional performance securityA contracting officer may require performance security beyond the statutory payment bond, but may not require it for a general bid with labor and material cost below $25,000 or a sub-bid below $50,000. 1

What to Watch for in Connecticut

  • Apply the threshold to the right bid level

    Section 49-41’s contract threshold is above $100,000, and its specific exceptions separately exempt general bids and sub-bids below $100,000 in estimated labor and material costs, as well as consultant bids. Check both the prime contract and the particular subcontract bid before treating the bond as mandatory. 1

  • A payment bond is not the same as performance security

    The section requires a full-contract-amount payment bond for specified labor and material claimants. Performance security is additional authority held by the contracting officer; the statutory subsection (b) places floors on when it can be demanded. Obtain both exact provisions from the procurement package. 1

  • The awarded contractor must be named as principal

    Connecticut requires any bond furnished under § 49-41 to name the person awarded the contract as principal. Before execution, verify that the awardee—not a parent, affiliate or trade name alone—is correctly named and that the surety is acceptable to the awarding officer. 1

  • State highway bids have their own bid-security step

    For state highway construction, § 13a-95 requires a bid bond in the sum set by the commissioner; if awarded, the bidder must execute the written agreement and bond required under § 49-41. A highway bidder should arrange bid and contract bonding separately and use the commissioner’s specifications. 2,1

Who Regulates Insurance in Connecticut

Connecticut Insurance Department

The Connecticut Insurance Department licenses insurance producers and companies, oversees insurers and regulated insurance activity, and investigates insurance complaints. Its complaint and license-search services let you raise an issue or check an insurance professional or company. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 4% of gross premium when Connecticut is the home state When Connecticut is the insured’s home state, surplus-lines tax is 4% of gross premium; certain state and local government insureds are exempt, and broker or policy fees are not part of the premium-tax base. Connecticut’s required notice says these policies are outside the state guaranty association. Most placements require three declinations or an export-list qualification; an exempt commercial purchaser may qualify for the federal § 8205 search exception after disclosure and a written request. 6,7,8

Providers With Documented State Licenses

These providers publish a national listing for Surety bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Connecticut. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 14

Questions to Ask Before You Buy in Connecticut

  1. Is the project a public building or work of the State or a municipality, and does its contract or relevant general/sub-bid exceed the applicable threshold?
  2. Does the procurement require a statutory payment bond, additional performance security, or both?
  3. Is the awarded legal person correctly shown as bond principal, with a surety the awarding officer accepts?
  4. What indemnity, personal guarantee and collateral terms are in the surety agreement?

Surety Bonds in Connecticut: FAQ

Does Connecticut require a payment bond for every public contract? 1

No. The general rule in § 49-41 applies to covered state or municipal public-building and public-work contracts exceeding $100,000, with defined bid and consultant exceptions. The contract documents may require additional security within statutory limits. 1

Can an officer require a Connecticut performance bond on a small sub-bid? 1

The statute bars requiring performance security for a sub-bid when estimated labor and material costs are below $50,000, and sets a separate $25,000 floor for a general bid. 1

Who is named as principal on a Connecticut public-works bond? 1

The person awarded the contract must be the principal. The bond is furnished to the State or municipality for the benefit of labor and material suppliers; the contracting officer approves the surety. The statute bars requiring the contractor to use a named surety, agent, broker or producer. 1

Surety Bonds in Other States

Other Coverage in Connecticut

Sources

  1. Connecticut General Statutes, Chapter 847, § 49-41. Connecticut General Assembly; § 49-41(a)–(c), 2025 revision; note to consult 2026 Supplement revised to January 1, 2026. Accessed 2026-09-28.
  2. Connecticut General Statutes, Chapter 238, § 13a-95. Connecticut General Assembly; Submission of bids on state highway construction; bid bond and post-award bond terms. Accessed 2026-09-28.
  3. Connecticut Insurance Department. Connecticut Insurance Department; Official Department homepage; mission and department resources. Accessed 2026-09-28.
  4. Licensing. Connecticut Insurance Department; Department licensing resource landing page; links to state agent and company license lookup. Accessed 2026-09-28.
  5. Ask a Question or File a Complaint. Connecticut Insurance Department; Online complaint form and consumer affairs helpline. Accessed 2026-09-28.
  6. FAQs: Surplus Lines Brokers. Connecticut Insurance Department; Current tax rate, tax base and exemptions, diligent-search rules, guaranty-fund notice. Accessed 2026-09-28.
  7. FAQs: Surplus Lines Brokers. Connecticut Insurance Department; Question on surplus-lines notice states Connecticut Insurance Guaranty Association does not cover these policies. Accessed 2026-09-28.
  8. 15 U.S.C. § 8205: Streamlined application for commercial purchasers. U.S. House of Representatives, Office of the Law Revision Counsel; Broker's due-diligence search exception for an exempt commercial purchaser requires prior disclosure that admitted-market insurance may offer greater protection/regulatory oversight and the purchaser's subsequent written request for nonadmitted placement. Accessed 2026-09-28.
  9. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  10. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  11. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  12. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  13. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  14. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  15. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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