Archive for: November 2016

Strong construction growth drives bonding demand, but also a labor shortage, giving rise to increasing claims The fortunes of the surety sector are, naturally, directly linked to those of the construction industry. After reaching a high mark of more than $5.5 billion in premium in 2008, that number decreased...

The outlook for surety in Canada is healthy, but a number of developments are introducing increased risk that need to be taken into account and properly managed, speakers suggested during the Toronto Risk and Insurance Education Forum last week in downtown Toronto. Likely, “80% or so of the bonds...

Many owners, particularly large corporations or public entities, require contractors to provide a labour and material payment bond to ensure that sub-trades are paid and (hopefully) avoid protracted payment disputes. A typical labour and material bond creates a tri-partite relationship among the principal (the contractor who is being bonded),...

The outstanding results of the surety industry over the last 10 years are beginning to make some buyers question the value of surety bonds. However, there are dynamics going on in the construction industry and commercial markets that indicate the need is greater than ever for their use. For...

Arch Coal will use traditional insurance to guarantee that nearly $400 million in cleanup work eventually happens at its Wyoming mines, according to a restructuring plan approved Tuesday by a federal bankruptcy judge. The plan moves the coal giant away from self-bonding, a contentious practice that allows companies to...