Marsh, the insurance broking division of N.Y.-headquartered Marsh & McLennan Cos., announced last week the launch of a global surety practice unit.Marsh said its network of more than 200 surety specialists is already providing clients with consulting and brokerage services in construction and commercial specialties around the world. The brokerage said the creation of a global surety practice unit is a crucial step toward aligning surety colleagues globally and enhancing the capabilities.
The new unit will be led by David Moylan. He has been with Marsh for over 25 years, the last five of which he served as chairman of the surety practice in Marsh’s international division. Moylan will continue to be based in Washington, D.C.
“As global economic uncertainty continues, companies around the world are looking to manage their credit arrangements more proactively. By enhancing collaboration and innovation we will be able to assist clients across many industries manage their surety facilities more effectively,” said Moylan.
Surety is a credit instrument, issued by insurance companies, known as a bond guarantee. Under this arrangement, an insurance company will guarantee that a corporation will carry out an obligation to a third party. Should the obligation not be fulfilled, the third party can make a claim demanding that the insurer either satisfy the obligation or pay the bond penalty. Surety bonds are used in many countries.
Common examples of the use of surety involve project owners or developers requiring performance or advance payment bonds from contractors to secure work on construction projects; firms supplying goods within a predetermined time frame to third parties; litigation bonds; and surety bonds guarantying adherence to regulatory requirements.