Knowledge Corner

Keeping your Surety underwriter in the dark is never a good idea. Surety companies are your partners who support the growth and stability of your company. However, this partnership is only as strong as the information you share. 

Below are the essential documents or notifications you should be sharing with your Surety on a regular basis:

1. Financial Statements
   First, share year-end financials promptly. These should include a balance sheet, income statement, and cash flow statement, preferably prepared by a construction-oriented CPA.
   
   
2. Work-In-Progress (WIP) Reports
   Provide monthly or quarterly updates showing job progress, costs incurred, and projected profitability, along with over and under billings. This helps your Surety assess project health and overall backlog.
   
   
3. Operational Changes
   Notify your Surety about significant events, such as new project awards, contract disputes, or changes in key personnel.
   
   
4. Business Plans
   If you’re expanding into new markets or want to increase your bonding needs, share that strategy with your underwriter and how you’ll manage the increased risks.
   
   Providing timely and accurate updates to your Surety is critical. Sureties use your financial data to determine bonding capacity and pricing. Surety underwriters rely on current data to assess your financial health and project performance. Delays in sharing key information can:
   •    Create uncertainties
   •    Erode trust
   •    Slow down the bond approval process
   
   Out-dated information can not only lead to delayed decisions but also bond declines. This would limit your ability to take on new projects. Consistent communication shows transparency and reinforces your relationship with the Surety. If you are looking for more information about surety bonds or for a quote on your upcoming project, speak with one of our Surety Brokers today! 
   
   
   
   TSIB’s Risk Consultants are currently servicing the following locations:
   East Coast: New York City, NY; Bergen County, NJ; Fairfield County, CT; Philadelphia, PA
   Texas: Austin, San Antonio, Houston, Dallas
   California: Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County

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