Surety & Bonds


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(Insurance coverage can not be bound or modified without written confirmation from Mountain West Insurance & Financial Services, LLC.)

Insurance vs. Bonds



Transfers Risk

Two parties are involved:

  • Insurance Company
  • Insured


Guarantee performance; relieves project owner of risk of financial loss.

Three parties are involved:

  • Principal (our client)
  • Obligee (who our client is working for/in contract with)
  • Surety (bonding company)
  • Types of Bonds:
    • Commercial: license and permit, crime, ERISA, miscellaneous
    • Contract:
      • Bid Bond – provides assurance that the contractor intends to fulfill his/her responsibilities per the bid, at the price bid and will provide necessary performance and payment bonds.
      • Performance Bond – protects the project owner from financial loss if the contractor fails to perform the duties outlined in the contract.
      • Payment Bond – guarantees that the contractor will pay subcontractors, laborers, and suppliers relating to the contract.

Our Surety/Bond Niche Team will be able to help you find the right bond for your needs.