- February 14, 2017
- Posted by: Surety Bond Experts
- Category: Surety Bond, Underwriter
We’ve highlighted the role of a surety bond producer in previous blogs and posts, because, honestly, that’s what we know best! But another area which is important is the role of the underwriter. We work hand in hand with the best in the business. We are proud of the relationship we have made with our knowledgeable underwriters. So we find it only proper to highlight the important work that they do!
So what does the underwriter consider when deciding if the application should be approved? Here are a few things they consider when looking over an application:
- The industry of the bond: Is it a high risk bond? Low risk? For example, issuing a bond for a construction project is riskier than issuing a bond for a notary.
- The applicant: What is the financial history of the applicant? As with many financial decisions, a strong financial history of an applicant will assure the underwriter that the applicant is a sure bet and will honor the surety bond. But, a bad financial history doesn’t mean immediate denial of an application. Instead, the applicant may be asked to pay a higher premium.
- Claims: If the applicant has any open claims or has had claims filed against them, an underwriter may be more hesitant to issue a bond. A claim is filed when someone claims that the applicant has not fulfilled their end of the contract. Unless a claim is found to be false, it is a red mark on any application.
These are the main factors that an underwriter focuses on when deciding on an application. But do not despair. If there is an area where you may have had some trouble in the past, having a good relationship with your surety bond producer can help you get approved. We work daily with our underwriters, and if there is a good explanation for a red mark on an application, a surety bond producer can shed light on the situation.
We here, at GotSuretyBonds.com are an independent bond-only agency, committed to the principles of service, integrity and professionalism. We view our clients, employees and underwriters as our “business family”. We strive to offer each and every one of them unsurpassed attention and support to ensure a mutually beneficial relationship. We have a keen understanding that success for everyone is only possible through helping all of our constituents achieve their goals and objectives, we believe that a truly satisfied customer, employee or vendor is the best business strategy of all. Our surety bonding services help create a blueprint for success. Our principals have relationships nationwide and have earned the trust of underwriters. Because of our credibility within the underwriting community and longevity in the industry, we are able to act as powerful advocates for our clients. We have a unique, tactical process to professionally design and present a thorough financial picture with risk and financial analyses to the surety market.