---
title: Bonds | Get a Quote | PJ&C Insurance
description: Get a quote on bonds with PJ&C Insurance. Explore our tailored insurance options for businesses in AL, GA, MS, NC, SC, LA, TN, KY, FL, TX, NV, CA, CO, KS, OH, and DC today.
---

For more than 50 years, Pepper, Johnstone & Company has been trusted with insuring families and businesses. We partner with 60+ insurance companies so that you can consider options that provide the most appropriate protection.

# Insurance Companies That Do Bonds

from Pepper, Johnstone & Company

## Surety Bonds

A bond is a written promise that an insurance company will protect your assets and back up the promises made by someone else, helping a business comply with legal or contractual requirements. Specifically, a surety bond is a guarantee involving three parties: Principal, Obligee, and Surety, which defines the parties involved in the bond agreement. The Principal is the person or business with an obligation to perform. The Obligor is the second party, typically the person, company, or governmental unit requiring the guarantee. The Surety company provides the bond as a financial guarantee that the Principal fulfils their obligation to the Obligee. As long as the Principal performs their obligation, the Surety company has no role. The best Surety bond situation is when the Principal fulfils their obligation, the Obligee is satisfied, and the Surety company takes no part in fulfilling those obligations. Many businesses need bonds to legally operate under licensing rules and regulations. If the Principal does not do what is required, the Surety company has to meet the obligations. The surety may pay valid claims, but the Principal must reimburse the surety. If this happens, the Surety company is entitled to be reimbursed for losses and costs by the Principal.

In today’s marketplace, surety bonds are the preferred method of guaranteeing performance and financial obligations. Pepper, Johnstone & Company has a long-standing history with many of the industry’s leading surety companies. These relationships allow us to provide each client the best surety bond solutions at the most competitive price, with underwriting and pricing influenced in part by risk and credit.

###

### Get a free quote for bonds

We'll provide you with a bonds quote from an insurer that meets your needs and your budget.

[GET A QUOTE](/insurance/business/bonds/quote)

[GET SERVICE](/claims-services)

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### **Construction Bonds**

Bid, Performance & Payment Bonds and Supply bonds for contractors, including construction businesses that need bonding before starting work, widely used in the construction industry, with program capacity needs from “First Bond” to $25 million to help ensure work is completed, payment obligations are met, and protect non-compliance on projects

## Commercial Bonds

- **License and Permit Bonds** : A license and permit bond covers Contractor License, Highway and Street Permits, Agent/Adjuster/Broker Licenses, Fuel Dealer, Professional Licenses, Automobile Dealer, and Alcoholic Beverage Compliance Bonds; each permit bond helps businesses comply with licensing requirements before they can operate, can benefit businesses by helping protect customers and agencies from misconduct or regulatory violations, and one example is a licensed contractor needing bond approval before work begins.
- **Probate Bonds** : Administrator, Executor, Guardian, and Trustee Bonds
- **Receiver or Trustee Bond in Bankruptcy**
- **Public Official** : Notary Public, Sheriff, Deputy Sheriff, County Conservator, Constable, Jailer, County/City/School Treasurer Bonds, Court Clerk, Loan Closing Attorney, and FHA Schedule Bonds
- **Court Bonds** : Plaintiff Replevin, Detinue, Plaintiff Attachment, and Cost Bonds
- **Miscellaneous Bonds**

### Fidelity Bonds

ERISA (Pension Plans) – federally required to protect retirement plan assets from theft or mismanagement by plan trustees, Business Services Bonds

### Financial Institution Bonds and D&O Coverage

Commercial Banks and Savings Institutions, etc., including broader bank and finance risks tied to financial institution liability exposures.

* * *

## Frequently Asked Questions about everything insurance

### What is the difference between a fidelity bond and a surety bond?

A fidelity bond protects businesses against losses caused by employee theft, fraud, or embezzlement. If an employee steals company funds or commits dishonest acts, the bond can compensate the business for financial losses, and in service businesses, it can also help protect customers from dishonest acts.

A surety bond, on the other hand, guarantees that a contractor or business will faithfully perform contractual or legal obligations. If the principal fails to complete the work or violates the agreement, the obligee can file a claim against the bond for compensation. Unlike traditional insurance, a surety bond is a three-party arrangement in which each party has a distinct role.

### What are the most common types of surety bonds?

The three most common categories of surety bonds are used by **major players** such as contractors, regulated businesses, and government-facing applicants:

- **Contract bonds** – Used in construction and government projects to guarantee project completion according to contract terms.
- **Commercial bonds** – Required for licensing, permits, or regulatory compliance for certain businesses, often before a company can legally operate.
- **Court bonds** – Used in legal proceedings to guarantee financial or fiduciary responsibilities.

In these cases, the **principal purchases** the bond to satisfy the obligee's requirement.

Contract surety bonds are especially common for contractors bidding on public or large commercial projects.

### Why are surety bonds important for contractors?

Surety bonds help demonstrate that a contractor is financially responsible and has the ability to complete work according to agreed standards. Many project owners and government agencies require contractors to obtain bonds before awarding contracts, and some may require them before contractors can legally operate on certain public projects or under licensing rules.

These bonds protect clients from financial losses caused by contractor default, poor workmanship, abandonment of the project, failure to meet contractual obligations, and added project risk for owners and customers.

### What happens if a contractor fails to complete a bonded project?

If the principal (the contractor) does not fulfill the contract terms, the obligee (the project owner or client), as the second party, can file a claim against the surety bond. The surety company may compensate the obligee for covered losses or arrange for the work to be completed.

However, unlike traditional insurance, the principal is generally required to reimburse the surety company for any claim payments made on their behalf, depending on the bond terms and the obligations of the parties involved.

### Where can businesses or contractors purchase surety bonds?

Surety bonds are typically purchased through insurance companies that do bonds, licensed surety bond brokers, managing general agents, or specialized surety providers. Many large commercial property and casualty insurance companies also offer bond services as part of their commercial insurance portfolios, and underwriting may review cash position and credit depending on the bond type and exposure.

### How has the bond insurance industry changed over time?

Municipal bond insurance in the United States began in 1971 with the formation of the American Municipal Bond Assurance Corp., later known as Ambac. The industry grew rapidly, and by the late 1990s and early 2000s, roughly half of U.S. municipal bonds carried insurance, adding security for investors in municipal finance.

One major event that increased demand for bond insurance was the 1983 default of the Washington Public Power Supply System on $2.25 billion of revenue bonds, where insured bondholders still received full payment from Ambac. That default highlighted the value of bond insurance because insured holders were paid in full, which increased demand among government agencies and the construction industry, two of the major players that rely on bonding to reduce risk.

The 2008 financial crisis significantly impacted the industry, as structured-finance exposure, asset deterioration, and interest-rate-driven mortgage stress increased risk for insurers, causing downgrades and reducing the number of active insurers. Those downgrades also hurt equity, limited access to finance, and reshaped the position of insurers in the market. Since then, Assured Guaranty has remained the only bond insurer to continuously write insurance from the pre-crisis period to today after acquiring several competitors. Some bond insurers and related firms also faced listing pressure and added scrutiny tied to the New York Stock Exchange.

## Clients Love Us

We work hard for this reputation.

[![Lauren Marsh](https://webtricity-assets-2.wbtcdn.com/fab11678-4400-4e7b-9d4a-2a2f81685a28/images/testimonials/lauren-marsh.8f1ef3286aaf69249e3de25282587a81dc15842de09824b6b0cbfb88b2501a20.webp)](/about/client-testimonials)

What’s made us stick with them is the accountability.

**— Lauren Marsh —**
Ridgeline Construction

[![Lynn Persell](https://webtricity-assets-2.wbtcdn.com/fab11678-4400-4e7b-9d4a-2a2f81685a28/images/testimonials/lynn-persell.9a4cd56880c3014002601585585987659e761ba9b4ce55d934e41cc15c2c97f5.webp)](/about/client-testimonials)

They’ve taken care of me during the darkest days after the tornado.

**— Lynn Persell —**
Persell Lumber & Mill Shop

[![Mike Walters](https://webtricity-assets-2.wbtcdn.com/fab11678-4400-4e7b-9d4a-2a2f81685a28/images/testimonials/mike-walters.b7e85f459e5433841cfc9e45b3561d5fa0b394111be2eb8400535769c689c271.webp)](/about/client-testimonials)

They understand our business & risk profile through industry knowledge.

**— Mike Walters —**
MVW Nutritionals

![Commercial client](https://webtricity-assets-2.wbtcdn.com/fab11678-4400-4e7b-9d4a-2a2f81685a28/images/avatars/woman-1.9cb73af9c1e3961f57515ecda4c9f4e639df0eff922a19dccb73c30bfe4385f4.webp)

PJ&C has become a crucial member of our business support team over the past several years.

**— Commercial client —**
Atlanta, GA

![J.W. E.](https://webtricity-assets-2.wbtcdn.com/fab11678-4400-4e7b-9d4a-2a2f81685a28/images/avatars/man-1.26763a560ec8c33e538d9a14d02e9af37b878ed2735807d5bbca818b43fecadb.webp)

The entire team is not only knowledgeable but down to earth and willing to share their time, tips and ideas.

**— J.W. E. —**
Nashville, TN

![Matthew H.](https://webtricity-assets-2.wbtcdn.com/fab11678-4400-4e7b-9d4a-2a2f81685a28/images/avatars/man-2.f0d626a1e52b3f01c2be3c90db4d5d367c60b36ac6f55c3a5fecdb9bccc5bd8b.webp)

Top notch insurance agency! The team at PJ&C provide excellent customer service while meeting all our needs.

**— Matthew H. —**
Dallas, TX

![Samantha B.](https://webtricity-assets-2.wbtcdn.com/fab11678-4400-4e7b-9d4a-2a2f81685a28/images/avatars/woman-2.8e76c5af7c1582529e66148a1be8aa0a919754e1706a80af3031e295450f4db1.webp)

All the employees at PJ&C are very professional and knowledgeable. Exceptional customer service.

**— Samantha B. —**
Athens, AL

[MORE REVIEWS](/about/client-testimonials)

## Insurance Articles

from the Pepper, Johnstone & Company blog

[**SaaS Company Insurance: What a BOP Won't Cover** — A SaaS company can sign its first enterprise contract, close a seed round and onboard a dozen employees before anyone asks whether the insurance program actually matches the exposure. — A Business Owner’s Policy covers a slip-and-fall here, a damaged server there. It does _not_ cover a client lawsuit…](/blog/saas-company-insurance-what-a-bop-wont-cover)

[**Professional Liability Insurance for Consultants & Accountants** — A client hires you for your expertise. You deliver the work, but they lose money anyway—and decide you are responsible. That scenario plays out thousands of times a year across professional services, and the costs are significant. — According to Swiss Re's 2024 Sigma report, U.S. liability claims…](/blog/professional-liability-insurance-what-consultants-accountants-need)

[**General Contractor Insurance: A Complete Coverage Guide** — In 2019, a summer storm sent a construction crane crashing through an apartment building in Dallas, killing a 29-year-old woman sitting on her couch. Four years later, a jury found the developer negligent and awarded her family more than $860 million. The crane operator walked free. — Most people…](/blog/general-contractor-insurance-a-complete-coverage-guide)

[View all articles](/blog)

## Related Types of Insurance

[— Builder's Risk Insurance — for construction projects](/insurance/business/builders-risk-insurance)

[— Business Income Insurance — for business owners](/insurance/business/business-income-insurance)

[— Commercial Liability Insurance — for business owners](/insurance/business/commercial-liability-insurance)

[— Commercial Property Insurance — for business owners](/insurance/business/commercial-property-insurance)

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