This “coverage” is actually a line of credit or a guarantee issued to a company by a surety bonding company. The surety company is a third party to a contract that would provide payment in the event that the company providing service fails to live up to its obligation.
Surety bonds are usually used by contractors and required for large projects or state and federally funded projects.
There are two types of bond, a “bid” bond and a “performance” bond. One guarantees the contractor will undertake the project at the quoted price and the other that the contractor will complete the project.
JWA has relationships with bonding companies that can guarantee the proper structure of both a bid and a performance bond.