Month: December 2023

SURETY: A Question for the Ages

Steve GoliaLeave a comment

Rate or Capacity? Which is more important for contractors?

Pork Chops, only $.89 per lb!!
But sorry, we’re all out of ’em…

Surety Bonds can be like that: A great price (low rate), but they’re all out – no capacity available. So there lies the answer. An awesome bond rate is useless if the underwriter is inflexible, unresponsive, and does not provide capacity when needed.

This is where FIA Surety comes in! We are highly experienced, big-picture underwriters. Each of our underwriters has between 20 and 40 years experience. You don’t have to train us!!

When your regular underwriters “don’t get it,” give us a call for a creative response. We are true surety experts! Contract, Site and Subdivision bonds in all states.

First Indemnity of America Insurance Company
2740 State Route 10 West, Suite 205
Morris Plains, NJ 07950-1258
856-304-7348

http://www.fiasurety.com


Providing A rated, T-Listed bonds in all states!

SURETY: What’s In Your Toolbox?

Steve GoliaLeave a comment

Yesterday I had a conversation with an agent to see if we could do business. He said “Sorry, we already have 25 sureties!”

Wow! Think about that: 25 sureties.

Why would they have that many tools in their toolbox? I’m guessing they want to be sure they have a market to solve any of their client’s bonding needs.

I told him they don’t need 25, they only need one – the RIGHT ONE!

FIA Surety is First Indemnity of America, a 40+ year old surety carrier that specializes in contract, site and subdivision bonds. Here’s why you need us.

Testimonial:

“In my 50 plus years as a surety agent, I have found a refreshing carrier with a positive, can do, think outside the box perspective that helped me put on one of the largest single job commissions in my career. We were persistent to get to the goal line without degrading our underwriting standards. It helped a contractor that is well qualified obtain a project that many other sureties declined because they were unable to listen to the whole story, be creative, be flexible and not be status quo.”

When your next surety bond pops up, give us a call!

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!

SURETY: Solve This Challenge!

Steve GoliaLeave a comment

Real live case:

A new applicant called us today regarding a P&P bond they need for a school district project.

I asked: “How did you acquire this contract? (public work is typically bonded) Was a bid bond used? Answer: “Yes.”

He went on to explain that the bid bond provider wants his wife’s personal indemnity, which they don’t want to give. (Apparently this was not discussed in advance!) He owns the company. “She doesn’t have anything to do with it.” I assured him full indemnity is normal, and we typically require it, too.

Challenge Question: What’s the next step to help this applicant?

  • The client could go back to the bid bond provider and offer them collateral in lieu of full indemnity.
  • They could offer to sign a “Non-transfer Agreement” which prohibits moving assets between the indemnitor and the non-indemnitor.
  • If they want us to consider, we could look at those two options.
  • They could try a new agent and underwriter and may get a different response.
  • They could offer the school district cash collateral or an Irrevoccable Letter of Credit issued by a commercial bank in lieu of the P&P bond.
  • They could also offer the school district a Tripartite Agreement – which is a form of funds control.

At FIA Surety, you don’t get knee-jerk reactions. You get thoughtful responses, promptly given. We’re proud of the fact that we’ve been a highly successful “surety only” market for over 40 years. We’ve seen it all – twice!

Put our vast expertise to work and solve your client’s problems.

FIA Surety is First Indemnity of America Insurance Company, a carrier providing A rated, T-listed bonds in all states!

http://www.fiasurety.com