SURETY

ASSOCIATION

of WISCONSIN

Who We Are

The Surety Association of Wisconsin (SAW) is a voluntary, non-profit, professional trade association of surety underwriters, agents, brokers, accountants, attorneys, and other related professionals who have a vested interest in the business of suretyship in the State of Wisconsin.

Our goal is to foster the growth and success of businesses located throughout Wisconsin. Succeeding in this endeavor will make substantial contributions to the economy, employment opportunities and quality of life in our state. Finally, SAW will commit available knowledge and resources towards the betterment of these objectives and the surety industry.

FAQs About Surety

What is a surety bond?

A surety bond is a three-party written agreement by which one party (Surety) guarantees another party (Obligee) that a third party (Principal) will perform according to the bond, statute, contract or other obligation. The surety bond protects the Obligee by guaranteeing performance to the Obligee if the principal does not fulfill their obligation.

Surety – The insurance company obligated to be liable for the performance of a contract, debt or failure of a duty of another party.

Obligee – Government agency, private developer/owner or other party protected by the bond. The one to whom the principal, and subsequently the surety, has become obligated.

Principal – General contractor or business bound by construction contract, other contract, statutes, or other obligations to perform or pay a debt.

Types of surety bonds

Construction bonds: bid, performance, payment (labor/material), maintenance and supply bonds. These bonds are typically required by governmental agencies (federal, state, local) or by private sector lenders or developers.

Commercial bonds: there are innumerable commercial bonds, but some of the most common are fiduciary, appeal, indemnity to sheriff, attachment, replevin, license/permit, public official, tax, customs and many more.

How can surety help my business?

As a project owner or lender, how can surety benefit me?

Ensures project completion via prequalification: Surety companies conduct an extensive underwriting process to prequalify a contractor for a construction contract surety bond. This thorough vetting helps government agencies and private owners/developers make the right decisions when hiring a contractor for a project.

Provides options in the event of contractor default: Surety companies conduct an extensive underwriting process to prequalify a contractor for a construction contract surety bond. This thorough vetting helps government agencies and private owners/developers make the right decisions when hiring a contractor for a project.

Protects tax dollars and promotes economic growth: Bankruptcy filings have serious implications for government agencies and taxpayers, however if a contractor failure does happen, the surety company is responsible for the solution – not the government or taxpayer.

Ensures payments to labor, subcontractors and suppliers: A contract construction surety bond guarantees that covered subcontractors, suppliers and laborers on the job will get paid.

Supports contractor growth by providing critical resources: A good contract surety bond insurance company r and producer can be two of a contractor’s greatest assets. The producer and insurance company possess or have access to a wide variety of resources to assist contractors.

How can can I obtain surety bonding?

Surety bonds are issued on behalf of surety underwriting companies by agents and brokers who specialize in surety bonding. SAW has many qualified surety agents and brokers that would be able to assist you and your business.

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