Surety

Building relationships

Zurich expertise comes from our extensive network of regional underwriters who can assess your surety bond needs.
surety

Our Surety solutions

Our specialist surety unit has been at the forefront of the surety bond market for over 65 years developing long-standing customer relationships through all economic cycles.
We provide access to surety bonds in 25 countries, helping customers enter new international markets.

Contract Surety bonding

Contract Surety Bonding involves a three party agreement by which one party (the Surety) guarantees to a second party (the project owner/the beneficiary) the successful performance of a contract by a third party (the contractor/ the principal).

Simply, a Zurich bond is a guarantee of the obligations of one company to another, with the assurance that Zurich will cover any potential loss up to the agreed bond limit.

Beneficiaries of a Zurich bond can be assured that not only has Zurich assessed the financial strength of the contractor, but also its ability to fulfill its obligations to completion.

Contract Surety bonds offerings:

  • Bid/Tender
  • Maintenance/Warranty
  • Performance
  • Retention
  • Advance payment
  • Supply

Primary role of Surety

The primary responsibilities of a Surety include:

  • Prequalification of the contractor, taking into account its ability, experience and financial strength
  • Providing a guarantee of contractual performance by a contractor; even if the contractor becomes insolvent
  • Payment on default up to the agreed limit of the bond

For the contractor: Surety, a credit enhancement

Surety bonds can be viewed as a credit alternative to banking instruments e.g. bank guarantees that are commonly used. Advantages include:

  • No on-going surety facility fee
  • No/ Minimal effect on bank lines of credit
  • Centralized handling and investigation of claims
  • Zurich’s strong credit rating and global network capabilities
  • Other advantages include the review of bond wordings at tender or negotiation stage without any additional charge.