For any business that needs surety bonds, it is wise to find an experienced surety broker (an individual) to help you navigate the industry and find the right surety company to partner wit
When you enter into a surety bond relationship, you are essentially entering into two important relationships, one with your broker, and one with your surety. However, these are two very different relationships as well. The broker is there to educate, assist, advocate, and guide you through the surety process, with the ultimate goal of finding the right surety to meet your needs. The surety is there to actually take the risk and write your bonds, and may or may not have a close personal relationship with you depending on the situation. However, where surety bonds are an absolutely vital part of your business, it is highly recommended that your broker assists you in developing strong personal relationship with your surety.
Assuming surety bonds are an important part of your business, knowing how to find the right surety broker is critical. This will be an individual person (a properly licensed agent) who typically works for an insurance agency that is licensed in all states where you need bonds. So you are looking for the right person first, not just any insurance agency that happens to write surety bonds. This point is usually not well understood by business owners at the outset. Most insurance agencies simply do not employ surety experts, and therefore must allow the surety companies they represent to manage the process, which can cause significant problems when you need to find the right deal. So how does one go about finding the right surety broker? Of course, referrals to a good surety broker are common, though you may still not find the best broker with a referral.
Here are some tips to consider when selecting a surety broker:
Selecting an experienced surety broker is the first step in your process of achieving success. If you’d like to learn more about surety bonds, please contact me at Oswald Companies.