A letter of bondability is written by a surety producer, frequently consulting with the surety underwriter, and outlines the bonding capacity of a contractor at a given point in time. This letter is not a guarantee to provide contract surety bonds, as each bond is based on underwriting information available at that time, but it can give contractors and others an indication of surety capacity for a given contractor.
At minimum, contractors should consider establishing a $ 200,000 contract surety bond line, that requires little to do so, and will enable them to obtain a letter of bondability outlining that level of surety capacity. Beyond serving as a vehicle to facilitate surety requests, the letter of bondability can also be used as a marketing tool. To prequalify for a contract surety program and to receive a letter of bondability supporting that program, contact our surety department at (907) 274-4142.
