We might as well admit that many companies look at surety bonds as a necessary evil. This is because it’s a product that usually requires a personal guarantee and may also impede a business owner from success if bonds cannot be obtained under reasonable terms and conditions.
On the flip side, a company with strong bonding support may enjoy the fact that certain competitors cannot obtain the level of bonding support needed to compete on the same work, thus increasing the bondable firm’s chances for success and higher margins.
It depends on which side of the surety fence you are on. You’re either in the surety club or on the outside looking in, upset at how the game of surety is played.
Of course, there is no favoritism in the surety industry of one firm over another. It is just a brutal reality of how your firm stacks up in the underwriting process.
Contact me to discuss surety bonds in further detail.
Note: This communication is for informational purposes only, and is not intended to offer legal, tax, or client-specific risk management advice. Information in this communication is not meant to describe specific coverages that may be advisable or available to you or your company, or to interpret specific coverages that may already be in place. General insurance descriptions in this communication do not include complete insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis. View our privacy notice.