Backing Up Your Promise

We Want to Get the Bond to

You When You Need It!

In these fast-moving times, we understand the importance

of getting the bond to you on time, every time. In order to

help you meet your deadlines, we ask that you give us the

underwriting information we need before your need for

bonding arises. Put simply, the more information you can

give us ahead of time, the more quickly we can get the

bond into your hands.

For more information

For more information about Contract Bonds, and to obtain a

premium quotation, see your local ERIE Agent.

This brochure is not a bond. It is only intended to provide a general

description of ERIE’® s Contract Bonds.

The ERIE takes pride in its tradition of financial stability and

excellent service offered to its Policyholders. Your ERIE Agent can

answer any questions and provide you with information about ERIE’s

superior protection for your home, auto, and boat. In addition, your

ERIE Agent offers a full line of life insurance products from Erie

Family Life Insurance Company. For more information, ask your

ERIE Agent.

NOTE: Not all products are sold in each state.

Equal professional service

ERIE embraces the principle of "equal professional service," which

means that every applicant, Policyholder and claimant receives the

high caliber service that is our hallmark. The ERIE does not tolerate

unlawful discrimination, and we expect our Agents to adhere strictly

to that nondiscriminatory philosophy as well. The ERIE assesses

each risk on its own merits and relies on objective underwriting

criteria designed to evaluate the nature and extent of each risk.

ERIE INSURANCE GROUP

Home Office • 100 Erie Insurance Place • Erie, PA 16530

(814) 870-2000 • www.erieinsurance.com

S-411 4/03 © 2003 Erie Indemnity Company

®

You Can Be Sure of The ERIE’s

Financial Strength and Stability

The Erie Insurance Exchange and the Erie Insurance Company

are consistently awarded a "Superior" rating from the A. M.

Best Company. This superior rating signifies:

Your client also will be happy to know that the Erie Insurance

Company is Treasury Listed by the United States Government.

And if that’s not enough, the strength of The ERIE is further

enhanced by the protection from our reinsurers. That’s why

we’re sure you will find that The ERIE is the right financial

partner for you.

With a Contract Bond from The ERIE, you, as the contractor,

and your client may have the satisfaction of knowing that if

the unexpected occurs…the financial strength of The ERIE

will be there to back you up. The ERIE provides four types of

Contract Bonds to satisfy your client’s requirements.

Bid or Proposal Bonds

When either a supply or construction contractor bids on a

project, chances are that a Bid or Proposal Bond will be

required of them. A Bid or Proposal Bond guarantees that

the bidder will, in fact, enter into the contract at the agreed

price, if the bid is accepted. It also may guarantee that the

contractor will furnish Performance and Payment Bonds if

necessary.

Performance Bonds

After being awarded a project, the contractor may be asked

to provide a Performance Bond, insuring that the job will be

completed according to the specifications of the contract.

Payment Bonds

A Payment Bond, sometimes referred to as a Labor and

Material Bond, guarantees that the contractor will pay all of

the labor and material bills that accrue as part of the work

specified under the contract.

Maintenance Bonds

A Maintenance Bond provides a guarantee of the quality of

the contractor’s work for a specified period of time after the

project is complete.

The Tools We Need From You

In order to maintain its financial strength, The ERIE must be

very thorough in underwriting contractors. Here are some of

the "tools" we’ll need from all contractors.

your key employees

- Accountant’s Cover Letter

- Balance Sheet

- Profit and Loss Statement

- Statement of Changes and Cash Flow

- Notes and Schedules

outstanding balances