Embroker Surety Bonds

Embroker frames surety bonds as most commonly needed in construction, required at the state, county or city level before a contractor can work on a project, but says they matter in other industries too. ¹Company-reported. Product-page 'Who are Surety Bonds for?' and 'What Is a Construction Bond?' sections; not a guarantee of bond issuance for a particular applicant.

Embroker lists contractor license, bid, construction performance, payment, maintenance, utility, supply and subdivision bonds as construction bond types it can help obtain, and explains that a bond protects the obligee, not the contractor who purchased it. ¹Company-reported. Product-page 'Types of Construction Bonds' and 'What Do They Cover?' sections; specific bond terms depend on the bond issued.

Embroker says surety bonds are not insurance and do not cover the purchasing business's own losses, so a bonded contractor still needs separate general liability, commercial property and workers' compensation insurance to protect itself. ¹Company-reported. Product-page What's Not Covered section.

Embroker says surety pricing is based mainly on the applicant's credit score, with a company with excellent credit typically paying 1-5% of the bond amount versus up to 20% for a company with poor credit; it gives a $50,000 bond as an example costing $500-$2,500 for good credit versus up to $10,000 for poor credit. ¹Company-reported. Product-page 'What Do They Cost?' section; actual bond premiums depend on underwriting.

Embroker directs applicants to identify the specific bond type and bonding amount needed, then get a quote through its platform; it says most developers will also require proof of general liability, commercial property and workers' compensation insurance before hiring a bonded contractor. ¹Company-reported. Product-page 'How to Secure a Construction Surety Bond' and 'What's Not Covered' sections; no quote was requested during this research.