Most construction contracts for major projects and almost all contracts with public entities will require performance bonds and payment bonds.
Most design professionals are not structured financially to have the necessary financial assets to induce a Surety Company to provide bonding for a design firm.
Also one of the main functions of a performance bond is to “Warrant” their construction work product. A very common misconception is that bonds are the same as “insurance”. Bonds are not “insurance”.
Any payment made on behalf of the Principal named in the Bond for failure to perform is subject to a recovery action against the bonded entity by the bonding company.
Do you have a&e clients with bonding and insurance needs? Contact PDI Today. Design Insurance is all we do.
PDI is an Indianapolis-based wholesale brokerage firm with a national network that includes thousands of insurance agents, brokers, architects, engineers and contractors in all 50 states. Since PDI’s beginning in 1980, we’ve handled a single line of coverage: errors & omissions (E&O) for design professionals. Contact Us today for a review of your design client's insurance program.