How Escalation Clauses Protect Your Contractor Customers November 16, 2021 The cost of construction materials is rapidly increasing, causing exacerbation among both contractors and consumers. Contractors are struggling to secure the supplies needed for jobs, and the materials they are able to obtain are often so expensive that many contractors are left shaking their …
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Why Surety Bond Form Language Matters October 28, 2021 For most insurance products, the quoting and issuing processes are pretty straightforward. You obtain a quote, your customer pays a premium, and everyone’s happy. Your customer may need to present a regulatory agency with proof of insurance, but there generally isn’t an additional step after they …
Why is it so Hard to Quote Surety Bonds? September 29, 2021 Surety bonds can be difficult to quote, and many insurance agents have experienced this first hand. Whether it be the outdated technological platforms, extensive underwriting requirements, or general lack of guidance throughout the process, one thing is certain; obtaining a surety bond for …
Understanding Surety Bond Collateral Requirements September 14, 2021 In certain circumstances, your customers may be required to put up collateral to qualify for surety bond coverage. When faced with collateral requirements, your customers are likely to ask you something along the lines of “why do I need to put up assets as a prerequisite to …
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Understanding Indemnity Agreements August 23, 2021 Surety bonds are subject to indemnification, meaning that the principal (your customer) is required to repay the surety company for all claims and claims handling expenses. Surety bonds are unique from other types of insurance, and the indemnity aspect of these bonds can potentially throw off agents (and …
How Inflation Impacts Surety Bonds August 16, 2021 Inflation is on the rise, and many experts predict that it will continue to expand for the foreseeable future. In the past year alone the cost of living has increased 5.4%, marking the largest year to year jump since the 2008 financial crisis. Many Americans are beginning …
Surety Bond Basics: Cancellation Notices August 5, 2021 Receiving a cancellation notice for a surety bond can be a pretty stressful experience. Many surety bonds act as a prerequisite to conducting business operations, and if your customer’s bond gets cancelled they may be required to shut down until they can obtain new coverage. If your …
Surety Bonds vs. Insurance July 30, 2021 A common misconception among insurance agents is that surety bonds are just another insurance product, no different from standard, more traditional lines. However, any agent who has actually worked to obtain a surety bond knows that this is far from the truth. While surety bonds are technically considered …
Oil Industry Woes Lead to Massive Changes in the Insurance Industry July 21, 2021 A recent ruling by a federal judge dictates that oil companies must contribute to the roughly $7.2 billion in cleanup costs of decommissioning oil wells in the Gulf of Mexico. The ruling marks a significant turn in the bankruptcy case of …
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Why Do Surety Companies Examine Credit? July 14, 2021 Surety bonds have a unique set of underwriting requirements not present in other lines of insurance, and arguably the most important aspect of surety underwriting is examining the principal’s (your customer’s) credit history. Surety bonds are a niche product, and chances are your agency specializes in …
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