Developers Surety And Indemnity Company
Developers Surety and Indemnity Company is a specialized provider of surety bonds and liability insurance tailored primarily to construction contractors, land developers, and housing developers. With its headquarters in Irvine, California, and full licensing across all 50 U.S. states plus Washington, D.C., this company has built a reputation for comprehensive coverage, prompt claims handling, and stable financial footing. Its evolution over the years reflects both the complexities of the surety industry and the importance developers place on reliable risk management partners.
Overview of Developers Surety and Indemnity Company
Corporate Background and Affiliation
Established in 1999, Developers Surety and Indemnity Company operates as part of the AmTrust Financial Services, Inc. group. It is headquartered in Irvine, California and is licensed nationwide. According to industry sources, the company has earned an A (Excellent) financial strength rating from AM Best and is considered a stable player in the surety sector.
Primary Market Focus
The company’s core clients are developers and contractors working in construction, housing, infrastructure, and land development. It provides bonds and insurance products designed to ensure project completion, statutory compliance, and financial protection for owners and stakeholders.
Products and Services
Surety Bonds
- Bid Bonds
- Performance Bonds
- Payment Bonds
- Maintenance Bonds
- Subdivision Bonds
- License & Permit Bonds
- Court & Other Miscellaneous Bonds
These instruments serve as financial guarantees that contractual obligations will be met or that corrective action will be taken if defaults occur.
Liability and Insurance Coverage
- Contractors Liability Insurance
- General Commercial Liability
- Professional and Excess Liability
- Workers’ Compensation
- Commercial Property and Inland Marine
- Equipment and Automotive Insurance
These coverages are tailored to reduce risk exposure for development projects and related operations.
Financial Strength and Capitalization
AM Best and Weiss Ratings
AM Best assigns Developers Surety and Indemnity Company an A (Excellent) rating. As of December 2022, the company had approximately $1.2 billion in assets, $800 million in liabilities, and a net worth of around $400 million reflecting a capital adequacy ratio of about 33%, significantly above industry minimums.
Meanwhile, Weiss Ratings issued a C grade in late 2023 based on metrics such as risk-adjusted capital, reserves, and profitability. At that time, the firm showed assets of $698 million and capital of $155 million, with a combined loss ratio around 105 percent and net income of approximately $3.5 million. Liquidity and long-term capitalization were rated more favorably.
Client Benefits and Industry Position
Strengths of the Offering
- Nationwide licensing and broad product portfolio for developers and contractors
- Backed by AmTrust’s capital and reinsurance support
- Competitive pricing and structured rate discounts
- Responsive claims handling, with 24/7 availability
These strengths make it a competitive choice, particularly for small to mid-size developers and customized bond needs.
Discounts and Pricing Approach
The company offers various discounts to help reduce costs, including:
- Introductory rates for new clients
- Multiple-policy bundling discounts
- Early commitment incentives
- Project sizebased pricing
- Discounts for industry association members
These pricing strategies are intended to attract and support developers while encouraging advance planning and long-term relationships.
Operational Performance & Claims Handling
Claims Processing
Developers Surety provides 24/7 claims management support. When a bond claim is made, a claims adjuster is assigned promptly to investigate and resolve the submission fairly. Users report generally efficient claims response times, although some reviews note occasional service issues or premium increases.
Policy Management and Renewals
Clients receive renewal notices 30 to 60 days before policy expiration. Policies can be canceled for reasons such as nonpayment or inaccuracies in application. In such cases, the company issues written notice and rebates any unearned premium.
Legal Precedents and Indemnity Issues
Surety Disputes and State Contracts
The company has been involved in legal disputes over performance bond obligations. For example, in a 2014 Georgia Supreme Court case, Developers Surety failed to respond within contractual notice periods and chose to allow a third party to complete the work, leading to litigation over indemnity responsibilities.
Another case in Maryland involved warranty bonds on a residential subdivision. Developers Surety had issued bonds and an indemnity agreement with the principals, later seeking damages when those principals allegedly defaulted on repayment obligations as guaranteed in the indemnity contract.
Who Should Consider Using Them?
Developers Surety and Indemnity Company is well suited for:
- Contractors and developers requiring bid, performance, payment, or subdivision bonds
- Operations needing liability or property insurance tailored to construction sector risks
- Businesses looking for competitively priced bond coverage with volume-based pricing
- Clients who value a regional surety provider backed by broader financial capacity
However, clients should be aware of mixed performance reviews and ensure they understand the terms of any indemnity agreements before engagement.
Challenges and Considerations
Financial and Profitability Metrics
While AM Best rates the company highly, Weiss Ratings highlights areas of concern like a recent negative net income, combined loss ratio above 100 percent, and modest profitability trends. These factors may pose long-term challenges if not addressed.
Competitive Market Landscape
The surety and indemnity sector is competitive, featuring major players like The Hartford, CNA Surety, Chubb, and Zurich. Developers Surety differentiates on niche regional expertise and customer service, but must continue to deliver value and service to stay relevant.
Developers Surety and Indemnity Company offers a focused mix of surety bond and liability insurance solutions tailored for construction and development clients across the United States. With a solid AM Best rating and the resources of AmTrust Financial Services, it provides a dependable framework for risk transfer and project protection. Clients benefit from a wide product range, variable discounting strategies, and responsive claims support. On the downside, some reviewers cite concerns over customer service and financial performance metrics flagged by Weiss. Nonetheless, the firm remains a relevant option for developers needing surety coverage backed by national licensing and trusted underwriting capacity. Understanding the details of indemnity agreements and evaluating corporate stability will be key in deciding whether to partner with this insurer.