Complicated Subdivision Bond ISSUED!

You may never have seen a case quite like this one…


  • Applicant needed a multi-million dollar maintenance bond for work installed under a subdivision development agreement.
  • The construction phase was already bonded by another surety and completed. They could not provide the required multi-million dollar maintenance bond.
  • Applicant provided a recent fiscal year-end statement with a negative $900,000 Net Worth and a $1 million+ Net Loss
  • “Compilation” financials for a bond over $3 million
  • The municipal obligee required a straight seven-year bond term for 100% of the construction amount.  (Rolling your eyes yet?)

How did FIA Surety put this together?

  • We verified the Compilation financials based on our “audit” of supporting schedules.
  • We restructured the Net Worth analysis by arranging the subordination of a major loan.
  • We worked with their CPA to evaluate the profitability of their current fiscal year.
  • We verified the warranty in the underlying construction contract.
  • We conducted a negotiation with the obligee resulting in a revised contractual obligation for the Principal, and they accepted a revised bond form written by our legal department – with a shorter term, and permitting non-renewal by FIA Surety.
  • We obtained the obligee’s written acceptance of the work in place.
  • We conducted a prior surety check with the incumbent carrier.

Complicated? Yes.

Difficult? Yes

Unusual? NO! Not for us. FIA Surety is known for getting deals done, even the hard ones.

If this is the level of service and expertise you want on Your bonding opportunities…. Call Us on the next one! 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

Providing A rated, T listed bonds in all states!

2 thoughts on “FIA Surety: SUCCESS STORY

  1. Bob Ashton December 22, 2022 / 9:45 pm

    That’s what thinking out of the box is not only what it’s about, but doing out of the box!!! Cudoos to you and your team! The agent is lucky to have you available to work for him! I continue to look forward to working with you!
    Bob Ashton
    All American Bonds and Insurance

    • Steve Golia December 23, 2022 / 8:09 am

      Yes, thanks Bob! The new year will be great!

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