Presently, Upper Hudson National Insurance Company operates as a mono-line surety that writes contract surety bonds focused on the middle market. Contract surety bonds provide financial security and construction assurance on building and construction projects by assuring the project owner (obligee) that the contractor (principal) will perform the work and pay certain subcontractors, laborers, and material suppliers. Contract surety bonds are commonly used in the construction industry. In order to obtain a contract, the contractor must provide the project owner a bond for its performance as per the terms of the contract. Additionally, owners typically require contractors to provide payment bonds to ensure that subcontractors and/or suppliers are paid for work done and materials supplied.
Typical contract surety bonds include the following:
Performance Bonds
Performance bonds cover performance of the terms of a contract. This protects the owner from financial loss should the contractor fail to perform the contract in accordance with the terms and conditions of the project contract.
Payment Bonds
Payment bonds cover payment of the contractor's obligation under the contract for subcontractors, laborers, and materials suppliers associated with the project. Since liens may not be placed on public jobs, the payment bond may be the only protection for those supplying labor or materials to a public job. It also assures private owners that their project will be completed lien free.
Bid Bonds
Bid bonds provide financial assurance that the contractor’s bid has been submitted in good faith, and that the contractor intends to enter into the contract at the price bid and provide the required performance and payment bonds. These bonds are used by owners to pre-qualify contractors submitting proposals on contracts. They are usually in an amount of 10% of the amount bid.
Insurance Agents
As a mono-line surety, Upper Hudson National Insurance Company is focused on providing prompt, responsive and superior service to our agents so that we can build strong and longstanding relationships. If you are an insurance agent and are interested in learning more about Upper Hudson’s contract surety programs, please contact:
Sonia Mullen
(845) 791-6700 ext. 301
smullen@upperhudson.com
If you are already an appointed insurance agent, underwriting submissions can be made via email or facsimile at:
underwriting@upperhudson.com
(845) 794-5333 Fax
Underwriting Submissions Checklist (for a complete package of Upper Hudson forms, please contact the above)
- Contractor questionnaire
- Personal financial statements and credit reports on the principals/indemnitors
- Corporate financial statements and credit reports on the contractor
- Work in progress report
- Project contract
- Job cost breakdown / schedule of values
- Bond request form
- Certificate of Insurance
