What might a contractor be required to provide when applying for a surety bond?

A contractor applying for a surety bond is typically required to provide financial statements and a business history because these documents help the surety company assess the contractor's financial stability, creditworthiness, and overall ability to fulfill contractual obligations. Financial statements, including balance sheets, income statements, and cash flow statements, demonstrate the contractor's financial health, while business history provides insight into their experience, reliability, and performance on previous projects. Together, these elements form a comprehensive picture that allows the surety to evaluate the risk associated with issuing the bond.

In contrast, while certain subsidiary or supporting documents may be relevant, such as a personal credit history or lists of subcontractors, they are not as central to the decision-making process regarding the issuance of a surety bond. Proof of existing clients may demonstrate demand for the contractor's services but does not directly address their financial stability or capability to manage the projects for which they seek bonding. Thus, focusing on financial statements and business history aligns best with the surety company's primary concerns regarding risk assessment.