Treasury-Listed vs. Non-Treasury Surety Companies

Snapshot

Treasury-listed (T-listed) sureties appear on the U.S. Department of the Treasury’s Circular 570, which authorizes them to write bonds on federal projects. Non-T-listed sureties may still be licensed and financially solid but are typically limited to state, municipal, or private work. Knowing when the contracting authority requires a T-listed carrier—and when a reputable regional surety will suffice—prevents bid rejections and protects subcontractors relying on the bond.

Key Requirements

• Federal mandates: The Miller Act requires 100% performance and payment bonds from T-listed sureties for federal construction contracts exceeding $150,000.
• State/local nuance: Many Little Miller Acts also mandate T-listed carriers, while others simply require the surety be licensed with the state insurance department.
• Capacity limits: Circular 570 shows each surety’s single and aggregate limits; obligees rarely accept bonds above those amounts without co-surety arrangements.
• Credit ratings: Owners often request AM Best A- (VII) or better, even for private work, especially when non-T-listed sureties are considered.
• Surplus lines: Some commercial sureties operate through surplus lines channels—confirm the obligee accepts that paper before bidding.

Contractor Playbook

1. Read the specifications. Federal solicitations will cite FAR 52.228-15; state bid manuals spell out acceptable surety criteria.
2. Pre-qualify the surety. Ask your bond agent for the carrier’s Circular 570 listing, AM Best rating, and certificate of authority for the project state.
3. Check project size. If the contract exceeds the surety’s single limit, arrange co-surety, reinsurance, or choose a carrier with higher capacity.
4. Document exceptions. When using non-T-listed paper, provide obligees with financial statements, rating letters, and references to ease approval.
5. Educate subs. Let downstream partners know the surety’s credentials so they feel confident supplying labor or materials.

Quick Reference for Surety Pros

• Maintain a matrix showing which public owners require T-listed sureties versus those that accept state-licensed carriers.
• Encourage clients pursuing federal or Corps of Engineers work to establish relationships with national sureties well before bid season.
• Use surplus lines or specialty sureties for niche obligations (e.g., lease, service, or tech bonds) but confirm obligee acceptance in writing.
• Share Circular 570 updates with agents and contractors each July when Treasury publishes revisions.