What qualities do you look for in a surety bond producer?
When it comes to a surety bond or insurance policy, there are many different traits that should be taken into consideration when looking for a producer. Some producers offer more competitive rates while others market themselves as being very customer-focused.
Depending on your business’s specific needs, these factors could either be extremely important or comparatively unimportant. The most important thing about the surety bond is to make sure that they understand your business and offer the best solution possible.
Talking with a broker or producer is likely going to be one of your most important interactions when it comes to choosing a policy, so you should make sure you are comfortable with this person or company. You will want someone who fully understands your type of business while also having the necessary experience in order to answer all of your questions.
This aspect can be difficult for some companies, but many brokers offer complimentary consultations if they are not able to provide instant quotes. Additionally, word-of-mouth referrals can often be helpful in finding other industry professionals who have worked with certain producers before.
What characteristics should I look for in a surety bond company?
There are numerous factors to consider when selecting the right surety bond company to suit your needs.
1) Free Market Quotes – Getting free market quotes directly from reputable providers is often difficult with other companies who require small print, long contracts, or hidden fees.
2) Expert Customer Service – provides expert customer service that is available 24/7 to handle your questions and concerns at no extra cost to you. You can call us anytime or simply use our convenient online contact form.
3) Market-Specific Bonds – For certain industries, there are particular bonds that are required by law or standard business practice.
4) Multiple Payment Options – multiple payment options to make sure our customers can choose the method of payment that is best for them.
5) Licensed Agents Bonded & Insured – In order to become a licensed agent, all applicants must pass a thorough background check and meet rigorous state requirements.
6) 100% Coverage Guarantee – Many other surety companies only guarantee the first $25,000 of their bonds.
I’m not sure if I should contact a surety bond broker or a surety bond agent – what should I do?
When a client needs a bond, they contact an agent who then refers them to a broker in their network based on the consumer’s specific needs and requirements. Brokers typically receive compensation from this referral as well as from providing the bond once it is issued, which is why working with a professional can save you time and money.
In some cases, the line between a broker and an agent can get blurred due to some overlap in their functions. In many of these instances, there is no clear distinction between the two roles.
However, it’s important to remember that agents only sell bonds; they never underwrite insurance for your company or provide you with any legal advice. On the other hand, brokers are well-versed in all aspects of surety bond transactions and understand what information has to be provided before they can issue one on your behalf.
How will I know whether I’m speaking with a reputable surety bond company?
The first thing to ask is how long the surety has been in business, and whether they have a good reputation with other insurance companies. The best way to check that out is to call customer service at your own insurance company and ask for their opinion even if you’re not a customer. A legitimate company will gladly share its experience working with others in the industry; you can also check with your state Department of Insurance about which companies are authorized to do business there.
Check on bonding. Make sure the surety has a good working relationship with its insurance carrier friends and has not been subject to complaints or disciplinary actions from their insurer partners. When selecting a bond provider, insurers prefer offering Surety bonds through companies they know and trust rather than ones they do not know.
How can I locate a surety bond agent that is familiar with my needs?
When you are in need of a bond, for any reason, you may also be in need of the services of a surety. A surety is an entity that acts as a guarantor for your financial responsibilities. This means that if you fail to meet your obligations then the surety company will reimburse the other party and take responsibility, instead.
When it comes time to find somebody to act as your surety there are many companies who would be happy to do so. The problem with this is finding one who specializes in what you need them for. You won’t get very far at all trying to use somebody who only provides bonding for commercial clients when what you want is personal or family-related.