173. Mistaken Identity: Surety Bonds

Your client needs a performance bond. It’s not a big one. This shouldn’t be too hard…

You submit it to the bonding company using their “E-Z, Quick, Fast, No Sweat” bond app and get rejected! Not because of the applicant – it was because of the type bond.  The underwriter gave a brief explanation, “We can’t write this because there is no contract.”   Waaaaaaaa?!

This is clearly a case of Mistaken Identity. Now we’ll help you avoid this trap and explain how to efficiently get the business written.

True Fact #1: ALL Performance Bonds guarantee a written contract between the Obligee (beneficiary) and the Principal (applicant).

True Fact #2: With Performance Bonds, the obligee is paying the principal to do the work described in the contract.

  • If the obligee is the local township
  • If there is no contract between the township and the applicant
  • If the township in not paying the applicant to do the work, then…

You actually need a Site / Subdivision Bond and that Quick, Easy app won’t get it. You also probably need a new surety, because most are reluctant to provide these. That’s where we come in!

FIA Surety is a bonding company that has specialized in these opportunities since 1979. Make no mistake, we actually like them! Big or small, we get them done.

Call us with your next Site or Subdivision Bond.

First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-541-3417
Visit us: www.fiasurety.com
We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX