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As a business owner, your company’s customer service is one of the keys to your success. The service that you should expect from your Surety Broker should be no different. Below are some of the best practices that your broker should be following.

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Maintaining a solid surety program can be vital to your company’s success. It is important that your Surety Broker understands your business, so they can advise you on how to maximize your bond program and the overall profitability of your company. Here are 5 ways your Broker can truly impact your company.

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A surety bond can cover both an owner and a contractor when there are any issues interfering with the completion of a project. When a trade contractor first gets licensed, they are required to obtain a contractor bond that helps protect customers from unfinished work.

Default is an unfortunate aspect of the construction industry, and it is important to understand why default occurs and what happens when it does.

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As a Contractor, you are working hard to secure new jobs, lower material costs, and retain good employees. Did you know that your Surety Bond Broker is there to help you build and maintain a profitable construction company? Working closely with your Surety Broker will ultimately result in a stronger bond program for you and help keep your company safe from construction risks. Keep reading to find out how!

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Working in construction means there are a lot of risks. Workers can be injured, equipment can be stolen, or damages could happen on the project site. Protection from these risks can take different forms. Surety bonds and construction insurance are common examples of such protection—and surety bonds are often confused with insurance.

However, it’s important to understand the two are different. Understanding the differences between construction insurance and surety bonds can help you determine which one you need on your next project.

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A General Indemnity Agreement (GIA) is a legal document that outlines the Surety/client relationship. As a contractor, it is important to understand the terms and language found in this document. Here’s a quick reference regarding some of the significant terms you may encounter:

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A General Indemnity Agreement (GIA) is essential in terms of risk transfer, and it is a necessary component of obtaining surety bonds. The GIA is a legal instrument used by surety companies to ensure they are “made whole” by any losses covered under their bonds. In the event a Surety suffers a loss as a result of the contractor’s failure, the contractor must reimburse the Surety for such losses.

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Those who work in construction typically have a basic understanding of surety bonds and how useful they are when it comes to reinforcing industry regulations. However, some contractors that are required to purchase surety bonds know little about these insurance products, until they’re told they have to purchase them. This post caters to those of us who aren’t entirely sure on exactly how bonding works. 

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