What Sets PHLY Apart from Other Surety Bond Companies?- Philadelphia Insurance Companies

What Sets PHLY Apart from Other Surety Bond Companies?

The North American surety market was valued at $7.73 billion in 2017. That same year, surety bond companies spent $1 billion to pay losses and resolve claims to ensure bonded projects were seen to completion.

When an issue arises between contracted parties, the value of a surety bond guarantee quickly becomes apparent. The surety will step in to investigate and may provide direct financial assistance to one or both parties, recruit additional labor or resources, and ultimately ensure the contract is fulfilled fairly.

When it comes to selecting a surety bond company, it's important to find a partner that not only has strong financial backing but understands your industry and the business requirements you need to meet contractual obligations. With the financial backing of one of the largest insurance groups in the world, the Tokio Marine Group, and a national footprint in all 50 states, Philadelphia Insurance Companies (PHLY) is one such surety provider.

PHLY has recognized expertise in contract and commercial surety bonds, from performance and payment bonds to subdivision, service contract, license and permit, court, probate, and more. Our strength is derived not only from robust financial backing but the value we place on building relationships with our producers and principals throughout the country.

Why Get a Surety Bond?

The most obvious reason to get a surety bond is that it is required by a regulatory body or statute. In the United States, construction bonding requirements are laid out in the Miller Act, which stipulates that any federal works project valued at more than $100,000 must be bonded. State and local statutes may also require bond guarantees for projects of lesser amounts. In addition, commercial sureties may be required for state or federal licenses, fiduciary relationships, or specialized businesses.

Savvy contractors and commercial operators understand that sureties are more than just a requirement. They are an investment that allows operators to pursue business endeavors without putting personal or business assets immediately on the line as collateral. Beyond providing credit, a strong surety provider acts as a business partner. A value added surety company helps principals conduct risk assessments, funding verification, contract reviews, and continuity plans. The surety team can also connect the principal with bankers, accountants, and lawyers knowledgeable of their industry.

At PHLY, we aim to help our principals create a support team around their project to ensure the best chance of success. Successfully completing bonded projects helps our clients increase future bonding capacity and compete for bigger projects down the line. If a principal is at risk of default, PHLY steps in to share the burden.

What Does a Surety Bond Cost?

The cost of a surety bond is typically calculated based on a percentage of the overall bond that is being taken out. That percentage will vary based on a number of factors including the bond type, the principal's industry, location, experience, credit history, and the strength of their financials.

The total cost of commercial surety bonds depends heavily on the amount required by national and state regulations and the industry the business operates in. Freight brokers, for example, are required to have a surety bond of $75,000, whereas a notary public may only be required to get a surety bond of $5,000. Premiums for commercial sureties are generally between 1-10% of the total bond amount. Principals with stronger personal and business financials, credit histories, and longer experience in their field will get more favorable rates.

The two most common types of construction surety bonds are performance and payment bonds. Construction principals typically pay a premium between 1-3% of the total contract price.

For both commercial and contractor sureties, PHLY offers competitive rates for principals with proven industry experience, verified assets, and strong financials.

Choosing the Right Surety Bond Company

It's important to recognize that each surety company may have different capabilities for financial backing and areas of expertise. When selecting a surety partner, consider their financial strength, size, and performance metrics.

Financial Strength

The financial strength of your surety is a measure of how reliable they are when it comes to servicing debts. It also determines the single and aggregate bond limits they can extend. PHLY supports contractors for up to a $200M total bonded work program and commercial principals with programs of up to a $200M aggregate limit.

Construction obligees generally require surety companies to have an AM Best rating of B+ or higher. PHLY's excellent financial standing has been recognized with an AM Best rating of A++ (superior) and a Standard & Poor's rating of A+.


A good surety provides more than just financial backing, but also the business expertise it takes to complete projects. PHLY is among the largest surety carriers in the nation, ranking 12th overall with a $236.9M treasury listing. With operations in all 50 states, PHLY maintains strong relationships with construction engineers, accountants, bankers, and other professionals with niche expertise to help ensure the success of the projects we support.


PHLY is a leading provider of comprehensive surety services in the United States. Because the financial health of our clients is of the utmost importance, PHLY has invested significant resources into our loss control and claims operations. To prevent claims, we have developed superior risk management solutions. When construction or commercial disputes do occur, our investigative process will ensure fair arbitration and minimal losses.

PHLY's greatest asset is our people. Our strength is built on the investment we make in our staff and the relationships they build with agents and entrepreneurs across the country. Any applicants looking to work in PHLY's Surety division undergo a rigorous screening process and are enrolled in our proprietary surety training program. Graduates are experts ready to make the bonding process easy for you.

In addition to our on-hand experts, the PHLY bonding process is made even easier with PHLY Bond Express. Commercial Surety clients can use this four-step process to execute a bond right from their work or home office in minutes:

  1. Access or create your MyPHLY account
  2. Under "Products" find the Surety division and the Commercial Express Surety Center page
  3. Click on the "Get started" button
  4. Use the "Apply Now in PHLY Bond Express" button

Robust financing, a national network of experts, and tools designed for success - when it comes to your surety needs, you want to be PHLY sure.

Visit our product page or get in touch with your PHLY representative to learn more about PHLY surety.

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