Bonds & Surety
Payment Bonds Surety, 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.
Inside a Payment Bonds policy.
Guarantee that subs and suppliers are paid
Issued jointly with the performance bond (typical)
Issued at 100% of contract value (typical)
Protects the owner and the supply chain
Filed with the project owner or agency
Is this for you?
Contractors on bonded public projects
Federal contractors (Miller Act $100K+)
GCs on bonded private projects
Anyone whose contract requires payment bond filing
Contractors growing capacity for bigger jobs
Plain language answers.
Same cost as performance?
Typically yes, sureties usually price them together with performance bonds.
Who can claim on the bond?
Generally subs and suppliers in the chain that don’t get paid by the bonded contractor.
Does it replace liens?
On public projects, yes, liens aren’t available and payment bonds are the alternative recovery path for unpaid claimants.
Coverages that pair well with this one.
Ready for a Payment Bonds quote?
A short form or a quick call. We’ll shop it across 50+ carriers and come back with options.