It’s usually not the end of the world when your surety company says “no,” but certainly this is a position you should try to avoid. However, when a surety does surprise you by denying your bond request, there is a disconnect somewhere between the surety, the broker, the client, or all three parties.
While the exact amount of surety capacity available to a client is rarely cut in stone, all three parties should have a good sense where the relative capacity boundaries lie. On cases outside these boundaries, a collaborative case-by-case approach should be taken to test the waters without any firm expectations.
On the other hand, when you firmly believe your surety should be saying yes, it’s probably time to look for another surety, broker, or both.
Contact me to discuss Surety Bonds.
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