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Bonds throughout the United States with offices in Lexington, KY, Barbourville, KY, Florence, KY, Fort Thomas, KY, Whitley City, KY, Winchester, KY, and Cincinnati, OH. We are licensed and appointed in 48 states so we have the ability and expertise to help you no matter where you may live or work.

A bond is a great way to guarantee that a large investment in a project is not lost—whether or not the work gets done. This type of insurance is especially common in the construction industry, and is often utilized for government contracts.


Energy Insurance Agency represents the largest surety companies in the U.S., as well as several regional insurance companies that also provide surety bonds. Our agents have over 100 years of combined experience in issuing all types of bonds including business commercial surety, construction, fidelity, lien and various court related bonds. Energy’s high level and quality of service is paramount in getting each and every client underwritten with the proper surety company and product.

Energy is licensed to write bonds in multiple states as well as the Island of Guam.

Construction Bonds

The most requested bond is for a contractual obligation between a contractor and an owner/obligee. These bonds are usually referred to as bid bonds and performance or payment bonds. Most of the time the bond will be required by an owner of project, the financing entity, cities, states and the federal government.

These bonds act as a guaranty to the owner/obligee that the contractor will perform the work as outlined in the contract, will pay all vendors and subcontractors and will not default on the terms of the contract.

Performance and Payment bonds are usually written for 100% of the contract amount. Bid bonds can be issued for 5%, 10,%, 20% or 100% of the bid price. The amounts differ from state to state or owner to owners.

“I need a bond, what should I do?”

Contract surety bonds are a financial and performance guarantee. The bonds are underwritten based on the financial strength and experience of the contractor.

Information is given to an Energy agent and can be as simple as the credit report, name and address of the contractor. Larger projects might require audited financial statements, personal financial statements, experience of contractors and specific job related data. Our staff of experienced agents will work with you to meet the desired single job and aggregate job surety bond limits that you desire. We will identify the surety companies which offer a matching bond product that best meets the needs of your company.

Surety Bonds

A surety bond is a great way to guarantee that a large investment in a project is not lost—whether or not the work gets done. This type of guarantee is especially common in the construction industry, and is often utilized for government contracts.

A surety bond is an unusual form of insurance in that one person or organization pays for it, while another receives the benefit.

It’s easier to understand with an example. Imagine a contractor is building a new office building for a government agency. The agency naturally wants a guarantee that the taxpayer won’t be left out of pocket if the contractor fails to deliver the offices as promised.

The answer is a surety bond. The contractor pays a premium to the Insurance (Bonding) Company to purchase the surety bond. Should the contractor default or not fully perform the obligations of the contract, the Bonding Company guarantees the contract either by completing the agreed contract with another contractor or makes financial compensation to the government agency; who is the Owner of the Contract (Obligee). The big difference between this and ordinary insurance is that the Bonding Company can and will go after the contractor to get this money back (this is call Subrogation Rights). The point of the surety bond is that the Obligee gets the assurance that it won’t have to chase after the money itself.

While government agencies commonly insist on a surety bond, it can work with any two organizations. The one that purchases the surety bond is “the principal,” while the one that gets any payout is “the obligee.”

Other Type Bonds

Energy Insurance Agency has the experience and markets to provide almost any specialized bond that you need. These would include probate/court bonds, lien bonds, license bonds, ERISA bonds and other commercial surety bonds.

If there’s anything else you need to know about bonds, contact us today.

Bonds Quote Request

As an independent agency, we offer multiple options at competitive prices.

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