There are thousands of unique Commercial Contract Surety and Construction Bonds available to qualified parties. In its purest form, a surety bond is a contract between three parties (at least) where one party agrees to pay a sum certain in the event another party fails to comply with the contract requirements.

License and permit bonds are typically required by a municipality or other public body as a condition to granting a license or permit to engage in a specified activity. This type of bond is a guarantee that the party seeking the license or permit will comply with applicable laws or regulations. These bonds can also be structured to provide indemnity guarantees to third parties who sustain injury or damage as a result of the obligor's activities as described in the license or permit when such a guarantee is required. For example, businesses that hang signs over public sidewalks may be required to provide indemnity guarantees for injuries to pedestrians.

The Federal Government and all 50 states set certain bonding requirements with respect to public construction projects. The requirements are often embedded in the procurement codes for public contracts and contain specific and detailed stipulations with respect to the types of contracts the law applies to, the types and size of bond(s) required, who is eligible to make a claim on the bond, notice requirements for making a claim, the statute of limitations on filing a claim, and whether the act allows for the recovery of interest on the amounts claimed, as well as attorneys' fees incurred in bringing the claim.

Our Construction Services bond offerings include:

  • Bid bonds reassure project developers that bidders have the capability to accept and implement the job if offered. If the selected contractor declines the job or erroneously withdraws the bid, the project developer can make a claim on the bond to recover the difference between that bid and the next-highest bid.
  • A performance bond guarantees the faithful performance of the contract. They are typically required by federal, state, and local governments in conjunction with work on public projects. Should the contractor fail to construct the buildings per specification, the client will be compensated for any monetary damages by the surety company issuing the bond.
  • A payment bond guarantees laborers (such as suppliers and subcontractors) are financially secure even in the event of a contract default. As with all surety bonds, should the contract be defaulted and laborers cannot be compensated, it is the surety company’s responsibility to reimburse them. The surety company will then seek damages from the bond purchaser, also known as the principal.
  • Supply bonds mandate that suppliers provide materials, equipment and/or supplies as defined in purchase orders. If the supplier fails to provide the supplies as agreed, the bond amount can be used to reimburse the purchaser for the resulting loss.

This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued through Foster Sullivan Insurance Group, LLC or its carrier partners. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverage referenced in this website can depend on underwriting qualifications and state regulations.

Foster Sullivan Insurance – Protecting Your Future

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Who Our Clients Are...

Foster Sullivan business clients are small to mid-sized, privately held companies who would rather focus on revenue generating activities than they would insurance related issues. They surround themselves with trusted advisors who assist them in ensuring the safety and well-being of their employees, their clients and their property.

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  • Steve Howell, President
    Our success has been driven by meticulous planning, collaboration, and minimizing surprises and risks for our clients. As a result, we’ve been able to deliver consistently spectacular results. We expect no less from our strategic business partners. Foster Sullivan has been that kind of partner – they know us, they know our industry, and they work with us relentlessly on driving down the overall cost of risk & insurance for our construction business.
    Steve Howell, President
    Howell Custom Building Group
  • Linda Cronin, VP Finance
    Foster Sullivan Insurance has worked with us since our founding in 1989. Over the last 25 years, WEI has grown from 2 employees to over 80. We have had many different insurance carriers over the years but always the same agent. Mike Foster and Kelly Pappas have provided a consistent competitive insurance program as our company has grown. We appreciate the fact that Foster Sullivan focuses on risk reduction strategies – not just the sale of another insurance product.
    Linda Cronin, VP Finance
    Worldcom Exchange, Inc.
  • Fadi Bouchrouche, President
    F & B Distributors has been doing business with Foster Sullivan for over 8 years. Mike Foster has consistently offered competitive pricing and more importantly has been our advocate when we have had claims. Working with Mike & Lisa makes dealing with insurance matters so much easier. Thanks guys, you’re great!
    Fadi Bouchrouche, President
    F&B Distributors, Inc.
  • Gary Sidell, President
    I have been doing business with Foster Sullivan and Karen for over 5 years. She has always been extremely responsive, competitive, professional and dependable. Karen’s efforts have saved our organization thousands of dollars, while ensuring that we constantly have the right amount and type of coverage for our business. I cannot imagine working with another person or agency when it comes to insurance.
    Gary Sidell, President
    Bell Tower Management LLC
  • William Carroll, President
    Airex Filter Corporation has been doing business with Mike and Foster Sullivan for more than 15 years. Mike has consistently offered competitive pricing and more importantly has been our advocate when we have had claims. Working with them makes dealing with insurance matters so much easier. With the growing concern our customers have to work with vendors that are fully insured, asking for certificates of insurance has become common place. The staff at Foster Sullivan is fantastic to work with, and the response to all matters is immediate.
    William Carroll, President
    AIREX Filter Corporation
  • David Howard
    Piquette & Howard Electric Service has been a client of Foster Sullivan Insurance Group for over 20 years.  Our company has grown and expanded since then and Mike Foster and Kelly Pappas have been able to keep our insurance rates competitive and our coverage appropriate during that expansion.  With her legal background, Kelly has been extremely helpful in reviewing contracts and recommending changes when needed.  For us, as a contractor, getting Certificates of Insurance turned around quickly is crucial.  Foster Sullivan will get them back to us in less than 4 hours – usually sooner.  I would highly recommend  Foster Sullivan Insurance as an Agency to anybody looking for responsiveness, professionalism and dependability.  
    David Howard
    Piquette & Howard Electric Service, Inc.
  • Paul Votze
    Votze Butler Associates, Inc. has been a client of Foster Sullivan Insurance Group for over 10 years. Mike Foster, Kelly Pappas and Lisa Lariviere have earned our loyalty and trust by proving time and again that they put our best interest ahead of commission dollars. They don’t just sell us insurance policies, they partner with us and, as we have grown, they have adapted their services and recommendations to meet our changing needs. There are a lot of moving parts in the world of construction and they take it all in stride with a great sense of humor, enthusiasm and a responsiveness that is refreshing.   They are true professionals who clearly enjoy what they do!
    Paul Votze
    Votze Butler & Associates
  • Mark Muscatello, President
    Our business has expanded from one shop to over 40 in the past 20+ years and we are a serious player in the New England hair care industry.  Foster Sullivan Insurance has been our Agent the entire time.  Because we operate 7 days a week, 360 days a year, one of the key factors in our relationship has been "availability."  Nights, weekends, holidays, you name it, Foster Sullivan has been there for us!  I confidently recommend them because there is a difference!
    Mark Muscatello, President
    MjjM Enterprises, Inc. dba Supercuts of ME, NH & MA
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Business Owner Concerns...

Does your Agent recognize your insurance premiums’ impact on your Profit & Loss? Read More
Are you working with an invisible agent who appears only at renewal meetings?

Foster Sullivan has a team of proactive, responsive, accessible account managers and agents who know you, your business and your industry. We couple that with a specific, continuous service program throughout the policy year.

Have you been a victim of copy-quote-pray, where an Agent trying to win your business takes all of your existing policies, replicates them and comes back with a quote, hoping to sign you on as a new customer without any discussion about coverages, limits, deductibles or other tailored solutions? Many Agents offer standard insurance products in mainstream lines, with little to no client-specific consideration for their unique needs.
To varying extents, all claims make their way into a client’s “loss history” and will impact premium and underwriting. If your Agent fails to proactively engage the carrier on claim management and resolution, including keeping you updated on the claim status, you may be a victim of sticker shock at renewal.

Foster Sullivan has deep claims and litigation expertise within the agency, allowing for significant impact on claims handling. We put that expertise to use for our clients’ benefit in an effort to favorably impact their long-term premiums.

If your Agent doesn’t understand your business, how can he/she understand the challenges you face each day in successfully operating your core business?

Foster Sullivan’s account management and account executive experts, aligned in industry-specialized teams, are actively engaged in industry forums, associations and groups, while getting to know a client’s specific business and personnel.

Is your Agent solely focused on making the next sale and hitting a target for the month or do they strive for personal growth?

Foster Sullivan employees encompass a broad and deep expertise that includes legal, insurance and business experts, all brought to bear for a comprehensive approach to managing your risk in a professional, advisory and consultative manner. Continuing education and self-improvement is a vital part of the Foster Sullivan culture.