Payment Bonds Insurance, explained.
Guarantees your subs and suppliers get paid, usually issued with the performance bond.
Payment Bonds
A payment bond guarantees that the contractor will pay subcontractors and suppliers on a project. If the contractor fails to pay, claimants can collect against the bond.
On public works, mechanic’s liens aren’t available against public property, payment bonds replace that protection for subs and suppliers. Most owners require them on bigger jobs.
Is this for you?
Inside a Payment Bonds policy.
When this coverage pays off.
Public-works pair
A public job requires performance + payment bonds. We issue both at award.
Federal Miller Act bond
Federal jobs $100K+ require both bonds. We use sureties experienced in federal work.
Private payment bond
A larger private owner requires a payment bond. We arrange it through the surety program.
Plain-language answers.
Typically yes, sureties usually price them together with performance bonds.
Generally subs and suppliers in the chain that don’t get paid by the bonded contractor.
On public projects, yes, liens aren’t available and payment bonds are the alternative recovery path for unpaid claimants.
Ready for a Payment Bonds quote?
Fill the short intake form and we’ll shop across multiple carriers, or call us and we’ll get you a quote on the phone.