Surety Underwriting Guidelines

Surety underwriting guidelines are the criteria and procedures used by surety companies to evaluate and determine the risk of providing a surety bond—an agreement that guarantees a contractor will fulfill a project as agreed. These guidelines assess factors such as the applicant’s financial stability, work history, project scope, and management ability. The goal is to ensure the applicant can reliably complete the contract. By thoroughly evaluating these elements, the underwriter decides whether to approve the bond, set appropriate terms, and determine any necessary safeguards to protect the project owner.