Chris Kaliba, can you explain what role they play in a construction project and how they interact with the broader insurance program?

So I'll start with this because not many people appreciate the distinction between a surety bond and a typical insurance policy.

I think part of that is because a lot of times surety bonds are issued by companies like Trouters who also issue insurance policies.

And the mechanism is very similar, but there are some important distinctions.

At the bottom, a surety bond is a credit-backed performance guarantee of the work and payment obligations of the general contractor.

Typically in a construction contract, an owner developer is going to insist that the general contractor seek out and purchase a surety bond.

Many times the developer will not have a say in the bond that it's purchased, but other times they will.

Do you want to talk about how those potentially operate in a construction defect space for general contractors?