Towards responsible surety solutions.

What Is A Surety Bond?

At Gray Surety, we're committed to underwriting surety bonds that help companies grow their business in a responsible manner.

A surety bond is a specialized line of insurance that spreads and transfers risk. It's typically required by federal or state agencies before large government construction projects. It helps them reduce their own risk if a project doesn't succeed. These are known as contract bonds.

However, there are a number of different bonds, including commercial surety bonds. These guarantee everything from a public official's financial conduct to a company's compliance with local licensing regulations.

How Does A Surety Bond Work?

Three parties are involved in a bond agreement: a Surety guarantees the performance of a Principal party (the contractor) to another party, the Obligee (typically the property owner ordering the work).
The Surety plays a pivotal role. They carefully analyze the contractor's ability to complete a project successfully. Surety underwriters rely on their own industry expertise, as well as a detailed analysis of the contractor's:

  • Capacity to finish the job
  • Current financial condition and available capital
  • Previous character and work history

In this way Sureties help construction contractors, and the producers working on their behalf, to bid on projects they can reasonably and responsibly complete.
You can learn more about the two major types of surety bonds below. Or, visit the National Association of Surety Bond Producers for more information.

Our Approach At Gray Surety

Our team knows that service comes first, whether we're underwriting a bond for a large construction project or a smaller licensing bond. We know that the surety bond process can be complex, so we provide information up-front. We've also designed a streamlined submission process for our surety producers and their contractors.

From your first bond submission through every interaction you have with us, Gray Surety is committed to helping you grow your business responsibly. We want to get you to yes, but only when it's responsible to do so.

Because of this, we've integrated value-added business intelligence products into our underwriting process. Our financial analysis tools allow us to understand and quantify a contractor's financial capacity.

When we say "yes" at Gray Surety, it's because we know that we can provide the support contractors need. We know we've done our jobs when you think of us first with your next opportunity.

Get In Touch

Ready to see if Gray Surety can help you get to yes? Give our team a call today to learn about our surety bond opportunities. Find all of our forms and applications on our Agency Resources page.

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