Commercial Surety Bonds
Commercial surety bonds cover everything outside of construction. Court bonds, tax bonds, financial guarantees, insurance deductible bonds, surety-backed letters of credit. Most surety departments inside insurance agencies treat this category as secondary. We specialize in it.
Evergreen Surety works with mid-to-large market companies that have complex, non-standard bonding needs. If you need a $100 license bond, we can point you in the right direction. If you need something more sophisticated, please call or email us.
Megan Burns - 720-258-6182Email UsWhat Makes a Bond "Commercial"
Every surety bond is a three-party agreement. The principal has an obligation to fulfill, the obligee requires a guarantee, and the surety backs that promise. That structure doesn’t change across bond types.
What changes is the obligation itself. Construction bonds back traditional “sticks and bricks” construction projects. Commercial bonds cover everything else; regulatory compliance, licensing requirements, financial obligations, and court-related requirements. The underwriting is different too, which is why agencies that know construction bonds well don’t always know what to do when a client brings them something outside that lane.
Who We Work With
We typically work with mid-to-large market companies. CFOs, risk managers, and treasury officers who need specialists, not a paperwork processor. Companies whose current agency can place a bond but can’t explain what it actually does.
Two of our larger accounts came to us that way. One does about $250M in annual revenue, the other about $6B. Both were essentially unserved by their existing agency. We came in, figured out what they actually needed, and placed it.
Small transactional bonds, like license and permit bonds, can be purchased here.
Surety-Backed Letters of Credit
Also known as bank-fronted surety. Most companies posting letters of credit don’t know this alternative exists.
What they are and why they matter
- The surety carrier provides a counter-guarantee to a partner bank, which issues the LC to the obligee
- The obligee receives the on-demand payment language they require
- The principal keeps their banking capacity intact, with no restricted cash and no balance sheet impact
- SBLCs allow principals to satisfy restrictive collateral requirements through their bond program
Who it’s for
Homebuilders and developers posting security with municipalities, energy marketers and producers with large financial assurance obligations, companies with supplier credit agreements that only accept LCs, and PE-backed entities where restricting cash isn’t an option.
Why Evergreen Surety
Evergreen Surety is one of the nation’s largest producers of surety-backed letters of credit. The structure requires partnerships with large, financially strong carriers with an established bank relationship. Most competing agencies can’t place these. We can.
Insurance Deductible Bonds
When insurance companies require collateral for large deductible programs (workers compensation and liability being the most common) the default ask is a letter of credit. Most companies comply without knowing a surety bond can be an alternative.
We work with A-rated surety carriers to negotiate bond acceptance in lieu of letters of credit. Same result for the insurer, better outcome for your balance sheet.
Financial Guarantees
To obtain credit with suppliers and counterparties, companies often need to post collateral in the form of a letter of credit or surety bond. We can craft bond form language that satisfies supplier and vendor requirements, including agreements that have historically only accepted letters of credit.
Other Commercial Surety Bonds We Place
Court bonds
We handle court bonds for appeal, release of lien, probate, and conservator situations. Colorado requires them less frequently than other states, but when you need one, we can help.
Tax, license, and permit bonds
We also place tax bonds, mortgage broker and lender bonds, license and permit bonds, and warehouse bonds for clients whose needs fall outside the more complex programs above.
Why Companies Come to Us
We’re appointed with 15 surety carriers. When one declines or offers terms a client won’t accept, we have others. That’s not something a generalist agency with two or three surety appointments can offer.
We do surety only. There’s no property and casualty side of the business pulling focus. Every carrier relationship, every underwriting conversation, every solution we bring is built around bonds. That tends to matter when a program gets complicated.
Evergreen Surety is headquartered in Denver and licensed throughout the United States and Canada. We have no geographic restrictions on commercial bonds or specialty programs.
Beyond the Bond
Surety underwriters focus on specific financial ratios and metrics. Knowing which ones are driving decisions on your account is the difference between guessing and planning. We provide financial statement analysis and KPI reporting that ties directly to underwriting outcomes, and we maintain relationships with CPAs, fractional CFOs, and attorneys when clients need hands-on support beyond what we provide internally.
About Evergreen Surety
Evergreen Surety is an independent surety bond agency headquartered in Denver, Colorado, licensed throughout the United States and Canada. We do surety only.
Tom Patton, President, has more than 15 years of experience placing complex commercial surety programs, including surety-backed letters of credit, financial guarantees, and insurance deductible bonds. He is a member of the National Association of Surety Bond Producers (NASBP) and a former President of the Rocky Mountain Surety Association. Evergreen is an SBA-appointed agency with experience in the SBA Bond Guarantee Program.
Common Questions
What is the difference between commercial and construction surety bonds?
Construction bonds back project performance, guaranteeing that a contractor completes the work and pays subs and suppliers. Commercial bonds cover everything else: regulatory compliance, licensing obligations, financial guarantees, court requirements. The underwriting approach for each is different, which is why agencies that know construction bonds well don’t always know what to do with commercial bond requests.
Can a surety bond replace a letter of credit?
In many cases, yes. Surety bonds are off-balance-sheet, require no restricted cash, and come with the carrier’s obligation to investigate any claim before paying it. Letters of credit are demand instruments that can be drawn at any time without proof of default. Where an obligee requires an LC specifically, a surety-backed letter of credit can satisfy that requirement while preserving your banking capacity.
What types of companies does Evergreen Surety work with?
Mid-to-large market companies with complex or non-standard bonding needs. CFOs and risk managers at companies that need more than a generalist agency can offer. We’re not the right fit for small transactional bonds, and we’ll tell you that upfront.
How does a surety-backed letter of credit work?
The principal sets up a bond program with a large surety carrier and signs a general indemnity agreement. The carrier provides a counter-guarantee to a partner bank, which then issues the letter of credit to the obligee. The obligee gets the on-demand payment language they require. The principal keeps their banking capacity intact with no restricted cash.
Do you handle small or transactional commercial bonds?
That’s not our focus. Standard license bonds, notary bonds, and similar transactional bonds can be purchased here.
Are you licensed outside of Colorado?
Yes. Evergreen Surety is licensed throughout the United States and Canada. There are no geographic restrictions on commercial surety bonds or specialty programs. We’re headquartered in Denver but work with clients nationally.
Ready to Talk?
For smaller bonds (under $500,000), you can call Megan Burns at 720-258-6182 or email her at mburns@evergreensurety.com.
For more complex or larger bond needs, please call Eddie at 720-492-9258 or email him at emaxfield@evergreensurety.com.