How to Avoid Claims

Confused man and question marks. 3d rendered illustration.

Having a claim filed against your business, even if it is determined to be a false claim, can be a detriment to a business, tarring the business’ reputation.

A claim is when a client makes a formal accusation against a business for something they feel violated the contractual obligation.  The best way to avoid a claim is to be certain that your part of the contractual obligations are fulfilled, preferably with evidence to back your competency.  In order to avoid claims, you need to be certain, first, that you fulfill your contractual obligations.  After a formal claim is filed, the surety bond producer will review both sides to determine the validity of the claim.  This is why, having a surety bond producer who you have worked with in the past and have a good reputation with, can be tantamount to avoiding false claims.

Unfortunately, a surety bond does not protect you from claims.  It protects the public from a business’ failure to fulfill the obligations spelled out in the contract.  Although the surety bond company is there to pay the claim, the business will still be expected to reimburse the surety bond producer.

In order to avoid claims, it is important to follow government rules, fulfill all contractual agreements, document everything and, if a dispute arises, to try to resolve it with the complainant first.

It is important that a business chooses a surety bond producer who has a proven history of customer service and loyalty.  In order to assess a surety bond producer’s customer service and loyalty philosophy, it is important to assess if the surety bond producer is looking for a quick sale or if they actually care about the business.

In summary:

  • Surety bonds are meant to protect the general public from any default. If a claim is filed (false or accurate) both sides are be able to argue their case to the surety bond producer.  If the claim is found to be false, the surety bond producer will fight for the business.  If the claim is found to be valid, the surety bond producer will pay and then seek monetary retribution from the business.  It is important to have a solid relationship with a surety bond producer who is knowledgeable and able to explain different surety bond terms and legalities in order to make sure that the consequences of not fulfilling the contractual obligations and following government rules is evident to the business.


We here, at 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.