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Surety Bonds
Offering financial protection and essential support to ensure your projects are backed with confidence
At Howden we understand the importance of protecting your business’s financial interests. Our surety bond solutions ensure that you and your clients are fully protected. We work with a large selection of global sureties and banks to find you the best value bonding solutions tailored for your specific requirements. Whether you’re in construction, manufacturing, aviation, the energy sector or any other industry our tailored surety bonds, including performance bonds and contractor bonds are designed to meet your specific needs.
What is a surety bond?
A surety bond or surety is a promise to pay one party (the beneficiary) an agreed amount if a secondary party (principal or contractor) fails to meet their obligations, such as fulfilling the terms of a contract. The bond is provided by a surety (insurer or bank). The surety bond protects the beneficiary against losses resulting from the principal’s or contractors failure to meet the obligation.
At Howden Ireland, we specialise in providing surety bond solutions that meet the evolving demands of Irish and International businesses.
Surety bonds we offer
Surety bonds for different industries
- Construction Industry: Surety bonds in construction provide financial security and compliance for contractors and developers, ensuring project completion and adherence to contractual obligations.
- Renewable Energy: Performance, decommissioning, and environmental bonds ensure financial security, regulatory compliance, and long-term sustainability for renewable energy projects.
- Pharmaceutical Industry: Ensuring financial provisions for environmental liabilities in the pharmaceutical industry, as mandated by the EPA.
- Drinks Industry: Tax Warehouse bonds and duty deferment bonds offer financial security for distilleries, breweries, and distributors, ensuring compliance with Revenue regulations and preventing operational delays.
- Energy Industry: Performance bonds and environmental protection bonds secure investments in renewable energy projects, providing financial stability and risk mitigation for developers and funders.
- EPA & Waste Industry: EPA-approved on-demand bonds and trans frontier shipment of waste bonds ensure compliance with environmental regulations, managing risks and preventing pollution.
- Logistics Industry: Customs bonded warehouse bonds and duty deferment guarantees ensure compliance with customs regulations, allowing logistics companies to manage dutiable goods efficiently.
- Aviation Industry: Aviation maintenance bonds mitigate the lessor’s exposure to maintenance costs when reserves are under-funded or unpaid, ensuring financial protection.
What does a surety bond guarantee?
A surety bond, put simply guarantees that a contract will be fulfilled. There are many types of bonds but in general there are three parties involved. It could be a builder guaranteeing a homeowner that they will complete a house build (contract bond), or it could be a contractor completing an estate for a county council, and guaranteeing those works (development bond). Other types could be guaranteeing that you will supply a certain amount of goods at a certain price (supply bond) or that you will pay taxes & duties to Revenue, once you have been paid (duty deferment bond).
Our Surety Bonds team
Common queries answered
Surety bonds are most common in construction, infrastructure, and transport, but are increasingly required across a wide range of sectors
A surety bond guarantees that a principal/contractor will perform according to a specific contract, obligation, or legal requirement. It's a tripartite agreement where a surety (insurer or bank) guarantees to a beneficiary that a principal/contractor will fulfil their obligations. If the principal/contractor fails to do so, the surety is liable for damages. There are many types of bonds, performance bonds for example are standard in the construction industry, they guarantee that a contractor will complete the construction of a building or infrastructure. Other types could be that you will supply a certain amount of goods by a certain time or taxes if deferred such as duty deferment bond.
The surety looks at the principal’s credit rating, the financial strength of the company, as well as cash flow and the quality of its financial presentation this will determine if the surety provides a bond. The types of bonds needed and the duration of those bonds are also a factor.
As the premium rates differ for all surety bonds depending on the bond type and are determined based on the applicant's individual financial situation, there are no particular rates we can outline. An exact quote will be provided once we receive terms from sureties.
Our web site has an organised and comprehensive list of bonds. In the event it is not clear, our knowledgeable team welcomes you to contact us directly on 071-9623228 – believe us when we say, we have seen it all!
That will depend on all paperwork and premium due being received by the surety provider. Our advice is to get your application in early, as the minimum turnaround time is 4 weeks. This includes time involved in getting documents in and receiving terms, the principal and their agents accepting those terms, the principal providing us with the wording they require. All of this being approved by the surety, and the documents being issued for signature and premiums paid.
Generally speaking, surety bonds are issued for a particular contract period, plus a maintenance period if required.
Should a claim be made on your bond, the surety company will investigate the matter to determine its legitimacy. In most cases, the principal will be contacted to supply an explanation of the dispute or situation. It is also useful that any and all supporting and relevant documentation be provided to the surety which would be of assistance in their investigation of the claim.
Not quite. A surety bond protects the third party (the obligee), not the business purchasing it. It’s more like a credit agreement than traditional insurance.
Yes — we work with businesses of all sizes to arrange the right bond with appropriate limits and terms.