What’s wrong with this conversation?
Client: “I need a bid bond for this upcoming project.”
Agent: “OK, the following list of items will be needed to process your request.”
Client: “Wow, that’s a lot of stuff! I may not be bidding all 6 categories of work. If I only bid 4, how much info will you need?”
Ugh! This client doesn’t get it. The conversation got off on the wrong foot. It is important for clients to understand that surety bonds are not insurance. Underwriters approve bonds when they are CONFIDENT regarding the applicant’s ability to perform without causing a loss. Part of reaching that level of confidence depends on having Full Disclosure. If we feel the applicant is holding back, we worry about what may be concealed (loss of confidence), aka no bond approval.
Independent agents offer a valuable service, “I will survey my sureties and find the one that can give you the best capacity and terms. That one will be your best long-term partner.” Notice that rate was not mentioned b/c they vary little from one carrier to the next. The amount of info was also not important. Every underwriter has questions. The most stable, long term markets probably ask more questions than the newbies.
Conclusion: Avoid wasting your production time on rate shoppers and those who don’t appreciate the relevance of having a strong surety partner. They’ll probably leave you to save a dime, anyway…
Call us for Bid, Performance, Site, and Subdivision Bonds 856-304-7348.
FIA Surety / First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-541-3417
A- rated by A.M. Best
We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN, FL, GA, AL, OK, TX