How To Pick A Surety Bond Company
Not every surety bond company is created equally, so it pays to choose wisely when selecting who to work with. There are many businesses and agencies that can sell you a surety bond, but they don’t always offer a high level of customer service, and some of them might not be able to properly explain your bond to you. With the complexities of buying a bond, you need to pick a surety bond company that has deep experience and knowledge in your industry. And, of course, the best surety bond company will deliver all of this to you at an affordable price.
Look for a Dedicated Surety Bond Company
Bonding agents and companies across the United States can sell surety bonds, but many of them primarily deal in insurance—they don’t have the expertise that you want. When you need to purchase a bond, you don’t want to go to a business that writes bonds as a side job. You want to buy a bond from a dedicated surety bond company, which means they have likely written thousands of surety bonds over many years. They can do the job correctly, from the start, to avoid unnecessary problems and costs.
Can the Company Approve Surety Bonds In-House?
A large number of companies selling surety bonds can’t even approve them in house. This means that they send them out to others for underwriting, leaving you without a direct connection to the entity writing your bond. When you purchase a bond, you preferably want to work directly with the underwriter. You need that person or company to understand your business, assets, and special requirements, and you will want someone who can keep you informed of the process at any given time. Dealing with a company that writes its own bonds affords extra protection, and it cuts down on processing time and ultimately on cost.
Does the Surety Company Properly Defend You From Claims?
To choose the best surety bond company, you have to be sure of what you’re getting. The bond makes you responsible for any claims, up to the full amount of the bond including legal costs. Often, surety bond companies won’t get involved in the claims process. They’ll simply sell you a bond, collect your payment, and then move on to someone else. You should make certain your surety bond company would be there for you, and with you, if any claims arise.