File 04 · Carrier · West Des Moines, IA
Merchants Bonding Company
Surety-only mutual, West Des Moines — writing since 1933
Merchants is a surety specialist mutual founded in 1933 by E.H. Warner and Merle Milligan. The company publishes an AM Best A (Excellent) rating (A or better since 1958) and writes contract and commercial surety in all 50 states from 6700 Westown Parkway, West Des Moines, Iowa.
Merchants’ public materials emphasize that surety is essentially the whole book — not a sideline of a multiline carrier.
AM Best’s company profile (May 2025 action in the public snippet we reviewed) shows A (Excellent). Outlook language can move; check AM Best for the live view.
Sold through appointed agents, not as a consumer direct writer in the Colonial/Jet sense.
Bond series on this file
What they claim to write
Series A
License & Permit
Most regulated businesses post a license or permit bond before a state will issue or renew the license. The bond guarantees compliance with the statute — it is not insurance for the principal.
Series B
Contract / Performance
Construction and public-works contracts ask the contractor to guarantee the bid, the work, and the subcontractors. These are underwritten on financials and experience, not just a credit score.
Series C
Commercial
Commercial surety covers the bonds that sit beside a license or a jobsite: employee dishonesty, public official, lost-instrument, and a long tail of miscellaneous forms.
Typical desks: Contractors · Commercial principals · Independent agents