Surety Bonds
Does a Surety Bond Cover Defective Work?
Performance and maintenance bonds cover project completion and warranty obligations — which can include defective work. They don’t cover every workmanship complaint, but significant defects that breach the contract can trigger bond claims.
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Does a surety bond cover defective workmanship claims?
A performance bond covers your obligation to complete the project per contract terms. If your work is so defective that it constitutes a fundamental breach of contract, the owner may terminate you for cause and make a performance bond claim.
Maintenance/warranty bonds specifically cover defects discovered after completion during the warranty period. If defective work emerges in year one and you refuse to repair it, the owner can make a warranty bond claim.
Important distinction: a surety bond is not a substitute for liability insurance. Property damage from defective work is a GL claim. The performance bond covers your completion obligation — liability for resulting damage is an insurance matter.
Need a surety bond fast?
Trade Safe helps contractors get bonded same-day in most cases. We work with multiple surety markets to find the best rate for your situation.