Category: Surety Bond Producer

To Bond, License and Insure?

Starting your own construction business can sometimes be a leap of faith. But that faith in your business is stronger if you learn about the industry.  For example, it is important to know the benefits of being a licensed, bonded and insured construction company. Why should I be licensed and apply for permits? The simple answer is for protection, for you and your customers. It may be easier to cut corners and not apply for permits or licenses. But, if you want to have a long standing and respective business, licenses and permits are the way to go. First, you will need a general business license.  Beyond that, it is important to check with your local government and state offices to see which other license you may need. Permits are important because they help you to maintain valid parameters. By pulling a permit, you have sought the approval of your local government offices to perform the work that your customer wants. What about insurance, do I need insurance? How many insurances you need depends on the work you perform. If you directly employ workers, then you will need an insurance to protect yourself. If you drive your truck for...

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Surety Bonds and Insurances, Working Together

We have recently rolled out a program to partner up with insurance agents to get their clients the best surety bonds in the industry. So why should YOU work together, as an insurance agent, with Surety Bond Professionals? Well, we’re glad you asked! We offer access to the best carriers. We have been in the field for over 25 years. This has allowed us to form respectful relationships with many surety companies. This puts us in a position to work out deals for difficult-to-place bonds. This translates into better terms, more capacity and better rates for YOUR clients! We pay the highest commissions. We want your business and know you work hard. Thus, we share 30-40% of the premium with you for referrals on ALL bonds your accounts bring in. We treat you and your clients with the utmost respect. Clients, prospects and partners should be treated well. We value our “business family” and consider every one of them to be a part of it. So you can be ensured that you and your clients are in the best care in the business! Much of business is about relationships. The people you work with on a daily basis are...

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Common Surety Bond Terms Every Contractor Should Know

For commercial construction contractors, securing a surety bond is often the key to winning public work and scaling up to larger private projects. Along the way, you’ll encounter specialized surety terminology that isn’t always easy to understand. This quick-reference guide explains the essential surety terms, financial concepts, underwriting terminology, and construction bond types every contractor should know to navigate the bonding process with confidence. New to surety bonds? Start with our Construction Surety Bonds Explained guide for an overview of how surety bonds work before exploring the terminology below. The Three Parties to a Surety Bond Every surety bond is a legally binding agreement involving three distinct parties. Understanding each party’s role is fundamental to knowing where the financial responsibility ultimately lies. Party Definition Principal The contractor or construction business required to obtain the bond and fulfill the obligations of the contract. Obligee The project owner, municipality, or government agency requiring the bond to protect public or private funds. Surety The specialized bonding company that financially backs and guarantees the contractor’s obligations to the obligee. The Five Most Common Construction Bond Types These are the core construction bonds contractors encounter most frequently when bidding on and executing projects. Bond...

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Why your Relationship with your Surety Bond Producer Matters

Your relationship with a surety bond producer is like any relationship.  It needs to be a good match for what you are looking for.  A healthy relationship with your surety bond producer can be beneficial.  It can help lower your stresses at work and help your business grow.  But, what should you be looking for in a surety bond producer?  Unfortunately, there are no “match making” surety bond websites.  So we’ve outlined some things to keep in mind when choosing who will be your perfect surety bond producer match. Qualities to Look For First, if you are under the impression that surety bonds are not mandatory, you may actually be losing out on a lot of business.  Research has shown that the public construction industry is always growing and has consistent work.  A huge difference between public and private construction work is that public construction work requires a surety bond.   This is not always the case in the private sector. Having a surety bond producer, who looks out for you and guides you is tantamount to success for any construction company.  A surety bond producer can also help you to better understand certain terms.  Think of them like...

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