Why is it important that surety bonds are obtained from a regulated insurance company?
The beneficiary of a bond must be certain that the bonds it obtains offer the protection it requires. It is therefore essential that the surety company can meet its obligations in the event of a claim. This certainty cannot be assured if bonds are not issued by regulated institutions. Employers should check proposed surety companies with the Association of British Insurers (who have a list of members, including Zurich, authorised to provide bonds) and the Financial Services Authority.
