What should I do when a project contract asks for insurance or a bond?
Separate the insurance clause from the bond clause and identify the entity, project, requested limit, bond type, obligee, and obligation in each. SBA describes bid, payment, and performance bonds as distinct contract surety categories; its guarantee program applies only to qualifying small businesses and bonds.
Send the actual contract language to your broker or surety agent and ask them to match it to the proposed policy or bond wording. Do not treat one as a substitute for the other.4
Read the Real Estate and Construction Insurance Buying Guide
4 documents, numbered as cited. Open the sources
Sources and Further Reading for Real Estate and Construction
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