A surety bond insurance claim occurs when a party fails to fulfill their obligations under a contract, and the surety company that issued the bond is required to make good on the claim. Surety bonds are typically required in construction projects, where the contractor is required to obtain a bond to guarantee that the project will be completed according to the agreed-upon terms. If the contractor fails to meet their obligations, the surety company may be required to pay damages to the project owner.
Surety bond insurance claims can be a complex and time-consuming process. The surety company will typically investigate the claim to determine if it is valid. If the claim is valid, the surety company will typically pay the damages to the project owner. However, the surety company may also seek to recover the damages from the contractor.
