More and more contracts require guarantees that performance will be delivered. The Gallagher commercial surety bond insurance team has the knowledge and relationships with key sureties to provide assurances for these obligations.
Relationships that convert to future growth

Gallagher remains an industry leader in providing smart, effective surety programs for our commercial surety clients. We harness the creativity of our collective underwriting and brokerage experience to enhance or create surety programs across many industries and niches within Gallagher. Whether expanding programs via shared surety, co-surety or finding new uses for surety bonds such as replacing Letters of Credit, we find the best intersection of indemnity and pricing for our clients.


Our underwriting backgrounds give us a distinct advantage when seeking creative solutions to unique opportunities.

Surety Bond Graph
Understanding commercial and contract surety bonds

Commercial surety and contract surety bonds are instruments used between three parties: principal, obligee and surety entity. Our team of experienced licensed and bond production associates have worked across surety types to make the complex simple. 

Commercial surety bonds: assurance that keeps business moving

Commercial surety bonds are required by entities, government or legislation for projects by individuals or businesses. We place commercial surety bonds for domestic and international projects as well as working with customers’ existing programs and facilitating the release of collateral. The customers we serve for commercial surety bonds range from all sectors including healthcare, financial services, public utilities, and private and public companies. We work with you to implement the commercial surety bond for your specific need. There is a spectrum of commercial bonds that include:

  • License and permit bonds - required by the federal, state or local government as a condition to engage in a business activity or in the granting of a permit to exercise a particular privilege, and guarantee compliance with statutes, ordinances and departmental rules.
  • Court bonds – used with both plaintiff and defendants guarantee payment in actions of law for costs and damages at the time of judgement.
  • Public official bonds - cover the public official's term of office and guarantee that the bonded official will faithfully perform the duties of his or her office.
  • Customs bonds - These bonds are required by law. Principals under these bonds are typically importers or exporters of articles subject to import or other charges and taxes, custom brokers, or proprietors of warehouses licensed by the U.S. Custom Service.
Helping build and maintain our communities with contract surety bonds

As members of the construction community, we work alongside every type of contractor from home builders to general contractors within your community to highway and civil contractors to international general contractors. From private construction development to public works projects, our expertise in contract surety bonds keeps all parties protected. Contract surety bonds include:

  • Bid bonds – guarantee this if the principal (contractor) is a low bidder and awarded the job, he or she will enter into a contract and provide the necessary performance and payment bonds
  • Performance bonds – the surety entity is obligated to the obligee to ensure performance of the contract in accordance with the contract terms and specifications.
  • Payment bonds – guarantee that the payments due to qualified claimants, in connection with work performed under the contract, will be paid as committed.
  • Subdivision bonds – recommended for construction of subdivision to guarantee to a city, county, or state that a principal will finance and complete the required public improvements
  • Completion bonds/completion guarantee – ensures that a given project will be completed even if the contractor runs out of money or if any measure of financial impediment occurs during the production of the project
  • Maintenance bonds – a type of surety bond purchased by a contractor that protects the owner of a completed construction project for a specified time period against defects and faults in materials, workmanship, and design that could arise later if the project was done incorrectly

The Gallagher Difference

The challenge.

An energy company was in need of credit that was cost-effective, comprehensive and didn’t exhaust their financial resources.

Our actions.

We provided commercial surety bonds in lieu of letters of credit within a very complex indemnity structure. In this case, commercial surety was less expensive than letters of credit and freed up the need for the client to keep compensating balances at the bank for their lines of credit.

The result.

Because of our expertise and access to markets, we were able to successfully support $60M in power purchase obligations with bonds in lieu of letters of credit. This provided costs savings as well as freed up capital for additional uses.

Commercial Surety and Bonds Summary

  • Relationships with leadership at all major surety companies
  • Global experience
  • Expertise in both commercial and contract surety
  • Track record of improving terms and conditions for our clients

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