Specialty surety for
hard-to-place bonds

A non-standard surety bond is one an account can't easily obtain through standard markets — usually because of credit, financial condition, limited experience, the size of the bond, or the nature of the obligation. The bond itself works the same way; it's the risk profile that pushes it into specialty underwriting. Greenwood General is a wholesale MGA that gives brokers access to the specialty surety markets built to write these accounts.

Brokers use specialty surety when a client's bond request has been declined by a standard market or falls outside routine underwriting — for example, credit-challenged principals, newer businesses, larger contract bonds, freight brokers and forwarders, immigration consultants, or professionals ordered to post a disciplinary bond. The retail agent keeps the relationship; Greenwood places the bond wholesale.

A performance bond guarantees the principal will complete the contract according to its terms; if they default, the surety is responsible up to the bond penalty. A payment bond guarantees that subcontractors, laborers, and suppliers on the project get paid. The two are usually issued together on construction contracts, often for the full contract amount.

A bid bond supports a contractor's proposal, guaranteeing they will honor their bid and furnish the required performance and payment bonds if awarded the job. A performance bond takes over once the contract is signed and guarantees the work itself. Bid bonds are typically issued at no premium as part of the prequalification for the contract bonds that follow.

Premium is a percentage of the bond amount (the penalty), driven mainly by the principal's personal and business credit, financial strength, experience, and the type and size of the bond. Contract bonds are underwritten more intensively than small commercial bonds. Any starting rates shown on this page are for reference only — final pricing is set by the surety after review.

Often, yes. Specialty markets exist precisely to consider credit-challenged principals, with premium adjusted for the risk and sometimes additional indemnity. Some conditions remain outside appetite for this program — open bond payouts, active bankruptcies and unpaid tax liens, and revoked licenses. When credit is the concern, submit the account and underwriting will confirm the best available option.

Many small commercial and license bonds can be approved and issued the same day on eligible submissions. Contract bonds and larger or credit-challenged accounts take longer because they require fuller underwriting. Complete submissions move fastest — the more the file answers up front, the quicker the turnaround.

An active or recent bankruptcy is generally outside this program's appetite, along with unpaid tax liens and outstanding bond payouts. Once a bankruptcy is discharged and the file shows recovery, some specialty markets will reconsider. Rather than assume it can't be placed, submit the account with the details and underwriting will tell you what's available.

At minimum, a completed application, the bond form or obligee requirements, the required bond amount, and owner information with authorization for a credit review. Contract bonds usually add financial statements, a work-in-progress schedule, and bank and reference information. Transportation and license bonds often just need the application and the obligee's form.

The BMC-84 is the surety bond freight brokers and forwarders file with the FMCSA to meet the federal $75,000 financial-responsibility requirement. It guarantees the broker will pay carriers and shippers per its agreements; if it doesn't, claimants can recover against the bond. It's credit-based and underwritten individually — submit the account for terms.

A subdivision bond (also called a site improvement or plat bond) guarantees that a developer will complete required public improvements — streets, sidewalks, sewers, grading — to the standards of the municipality that is the obligee. Because they are backed by the developer's obligation rather than a paying customer, they are underwritten on financial strength and are often a specialty placement.

Several states require non-attorney immigration consultants to post a bond so clients harmed by improper practices can recover. In California the required amount is $100,000. It is a licensing/consumer-protection bond, credit-based, and available through this program — commonly placed with premium starting around 1.8% for qualified applicants.

An LLC bond generally refers to a bond a limited liability company must post to satisfy a licensing requirement — most notably California's $100,000 LLC employee/worker bond for licensed contractor LLCs, which protects employees for unpaid wages and benefits. It is required in addition to the contractor's license bond and is available through this program.

Yes. Brokers can submit through the Greenwood General online risk submission portal or log in to the surety platform for eligible bonds. No appointment is required to submit — send the account first and complete the appointment if you decide to place the bond.

Where the obligee accepts electronic filing or e-signed bonds, yes — many commercial and license bonds are delivered digitally, which shortens the time between issuance and the obligee accepting the bond. Some obligees still require a wet-signed, sealed original; the requirement follows the obligee, not Greenwood.

Yes. Alongside commercial and license bonds, this program places contract surety — bid, performance, payment, subdivision, and maintenance bonds — including accounts that need a specialty market because of size, credit, or experience. Contract bonds are underwritten on financials, work on hand, and track record.

A broad range: construction and contracting, transportation and logistics (freight brokers, motor carriers, forwarders), professional services requiring licensing bonds, developers needing subdivision bonds, and businesses facing court or disciplinary bond requirements. Eligibility is driven more by the account's financial profile than the industry itself.

The limit (penal sum) is set by the obligee or the statute behind the bond — for example, $75,000 for a BMC-84 freight broker bond or $100,000 for a California immigration consultant bond. On contract bonds the amount follows the contract value. Underwriting then decides whether the account qualifies for the required limit.

For small commercial and license bonds, usually not — an application and credit review are enough. For contract bonds and larger limits, financial statements, a work-in-progress schedule, and bank and reference information are typically required so the surety can assess capacity.

Yes, in many cases. Limited business history is one of the main reasons an account becomes non-standard, but specialty markets will consider newer businesses based on the owner's credit, experience, and the type and size of the bond. Smaller license and commercial bonds are the easiest starting point for a new venture.

Most commercial and license bonds are continuous or renew annually, with a renewal premium billed before the anniversary; pricing can be re-rated on current credit and claims history. Contract bonds generally run for the term of the project. Track the obligee's renewal or expiration date so the bond doesn't lapse and jeopardize the license or contract.

No. Greenwood General is a wholesale MGA that works exclusively with retail insurance agents and brokers. We never solicit or sell to the insured directly — the client relationship stays with the retail agent while we place the bond through our specialty markets.

Availability varies by bond type, obligee, and the surety market behind it. Many commercial and transportation bonds are available nationally, while contract and license bonds depend on the state and obligee. Submit the account and your underwriter will confirm availability for the specific bond.

The obligee is the party that requires the bond and is protected by it — a government agency, court, licensing board, or project owner. The principal is the business buying the bond, and the surety guarantees the principal's obligation to the obligee. Identifying the correct obligee and bond form up front keeps a submission moving.

Small commercial, license, and transportation bonds can often be quoted and issued the same day when the file is complete. Contract bonds and larger or credit-challenged accounts take longer because of the financial review involved. The completeness of the submission is the biggest factor in turnaround.