Surety Underwriting

Surety underwriting is the process used by surety companies to evaluate the risk of guaranteeing a contract or obligation on behalf of another party, often in construction or service industries. When a business needs a surety bond, the surety company assesses the financial stability, experience, and credibility of the business and its owners. This helps them determine whether to issue the bond and under what terms. Essentially, the surety acts as a backup to ensure that if the business fails to meet its obligations, the surety company can cover the losses incurred by the other party.