subdivision bond

Get to know FIA Surety: Patrick Lynch Jr.

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Egyptian Proverb: “The Boat That Has Two Captains Sinks.”

We can assure you; FIA Surety is stable and doing great – but we do have two Captains!  Read more:

Pat Lynch Jr. was born in Union NJ and studied culinary arts in high school. He worked in restaurants and was a catering manager.  His meteoric rise in the culinary world was tragically cut short when he realized he is allergic to carrots! Not wanting to give up every Christmas, Easter and Thanksgiving may have also played a role…

After graduating, Pat joined the company performing light construction at FIA’s new offices and later assuming an underwriting position under the guidance of his dad, Patrick Lynch Sr.

Over the course of 20 years, Pat has distinguished himself as an expert relationship manager.  His underwriting responsibilities place him in close contact with our agents and principals.  He has been uniquely successful in nurturing agency relations and has consulted with many of our clients to help them resolve problems and grow their businesses.

“We are a surety that works to solve problems and give clients a path forward.”

This positive attitude helps our clients and our company!

3 years ago, Pat was promoted to VP of Underwriting and Bond Manager. He is also president of ABSCO LTD. Inc. the holding company for FIA.  His expanded responsibilities are balanced out with his outdoor activities.  These include ATV riding and fishing.  Pat, like his dad Pat Sr., is a licensed sea captain.  Their forte is deep sea fishing 100 miles out on the continental shelf.  Pat looks to fight 500-pound tuna on these excursions!

At FIA Surety, we have two captains, but only one commander of the ship.  With the able-bodied help of Pat Jr., Pat Sr. has managed the company with a steady hand since 1979.

Pat Jr. specializes in Site and Subdivision bonds.  If you need one, call him directly at: (973) 541-3403

FIA Surety / First Indemnity of America Insurance Company

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

How Did a Fireman Become the Top Executive of a Bonding Company?

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Get to Know FIA Surety: Patrick Lynch Sr.

How did a fireman become the top executive of a bonding company?

Pat Senior (we have two) grew up in Newark NJ, the oldest of five children.  Since 1943 his family was the owner / operator of The Ark, a Newark restaurant, bar and liquor store.  Pat grew up in the business and at age 19 was thrust into a management role upon the untimely death of his father.

Pat proceeded to run and grow the business over the course of the next 20 years, building up their volume more than 10-fold! The business was concluded when the city took over the Ark property for construction of a new housing project.

For 14 years Pat served the city of Newark as a fireman. He survived the 1967 riots – a tragic period that resulted in the shooting death of his boss, Capt. Mike Moran Sr.

Pat served as a board member and finance chairman for the Shepherds of Youth Charitable Trust in Newark.  He was also chairman of the Veterans Hospital.

He became a professional lobbyist during these years, which gave him contact with group insurance programs and lead to the formation of an insurance company.  In 1979, First Indemnity of America, aka FIA Surety was born under Pat’s leadership!

The company started with six employees and occupied three locations over the years.  Our staff eventually grew to 40.  Our home office is now in beautiful Morris Plains, NW of Newark, NJ.

For FIA Surety, the “big break” came when an active writer of subdivision bonds withdrew from the market in 1980.  We moved in, filled the vacuum, and have been a major writer of site and subdivision bonds ever since!

Today Pat is still “captain of the ship” FIA Surety, and is also a deep-sea fishing captain.  Two of his three children work in the business, and he boasts five grandchildren.

Pat built our business on relationships and he remains accessible to our agents and clients every day.

Office:  (973) 402-1200

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

Get to Know FIA Surety: Paul Alongi, Sr., Claims Manager

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When was the last time you spoke to a personal friend of Joe Pesci and Frankie Valle? Ok, never? Well, meet our Claims Manager, Mr. Paul Alongi, Sr.

Paul was born in Newark, the oldest of four children and graduated from Barringer High School.  Joe Pesci and Frankie Valle were among his friends. Born with a love of music, he learned to play tenor sax at age 7.  As a big band member, his group backed up Connie Francis, Dion and the Belmonts, Tony Bennet, Xavier Cougat, Al Martino and others.  To this day, Paul is an active musician playing in several venues.

He was athletic, too!  Paul tried out for the NY Yankees in these early years.

Paul started his insurance career in the actuarial department of U. S. Life and studied for his law degree at night. In five years, he graduated from Seton Hall Law School and started his law practice.

While running for public office, Essex County Freeholder, he met a fellow candidate, Patrick Lynch.  Years later this would result in Paul joining Pat’s young company “First Indemnity of America Insurance Company / FIA Surety” to become our first Claims Manager.  He’s been a valuable asset all these years.

Paul has served on the Bloomfield Board of Education (President), the New Jersey Commission of Investigations, and has also been a long-time leader in many community organizations, including: the Bloomfield Federation of Music and Civic Band, the Garden State Concert Band, St. Thomas the Apostle Parish and Finance Councils, Holy Name Society and Circle of Friends.

Paul is a highly experienced problem solver and, he is accessible to our agents and clients!  973-541-3414

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

 

182. Banker Holding Back

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Sure, your banker loves you. But here is important info they want to keep from Home Builders, Developers and their Agents.

When starting a new project, developers must secure the project with the township. This can be in the form of:

  1. Cash
  2. Bank issued Irrevocable Letter of Credit (ILOC,)
  3. Or a surety issued Site/Subdivision Bond

The International Risk Management Institute says a surety bond is better than an ILOC:

“Corporate surety bonds are far and away the most preferred option for most owner/developers when you consider the potential disadvantages of the alternative guarantee forms.”

Now you know. Too late if an ILOC was already filed with the township… or is it? Actually, our surety bonds can be filed to replace / release the ILOC. Your banker won’t tell you that either!

This is a great move for developers! Get back your cash. Use it to acquire or start a new project. It’s NOT too late the fix the ILOC mistake if you know where to go. Most sureties won’t write this type of bond but at FIA, it’s our specialty!

FIA is also one of the few bonding companies that will write Down-payment bonds for it’s Home Builders freeing up even more usable cash for your company.

If you have an immediate need for a Site/Subdivision bond or are interested in replacing an existing ILOC with a bond, call us at 856-304-7348.

Steve Golia

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

Site and Subdivision Bonds – The Sequel

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In March we told you why Home builders and their Bonding Agents love Site and Subdivision bonds.  (Click to read prior message)  But don’t take our word for it.  Here’s what the International Risk Management Institute has to say about it:

“Corporate surety bonds are far and away the most preferred option for most owner/developers when you consider the potential disadvantages of the alternative guarantee forms.” (Click for entire article)

Clearly, the smart move for home builders and their bond agents is a surety bond.  And the bonding company you want is the specialist, long devoted to this market.  Unwavering since 1979.

Call FIA Surety.  It’s the smart move.

Steve Golia 856-304-7348

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

 

CE Rescue!

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It’s May and now you’re a month closer to your insurance license renewal…  Your CE rescue is here!

FIA Surety is proud to announce we have re-opened our free Continuing Education program.  You may know, we are an accredited CE provider in NJ and PA, and can provide the free CE course on your premises.

Give us a call to set up your class.  We are now accepting dates in June.  All the proper safeguards will be used to protect the class participants.

Free CE credits from FIA Surety!  Call us: 856-304-7348

Since 1979, FIA has been your dependable bonding company for Site, Subdivision, Bid and Performance Bonds.

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

 

This is NOT about the virus!

Steve GoliaLeave a comment

We know you’re sick of hearing about the virus! Here is some good news for a change:

FIA is open to help you with Site and Subdivision Bonds!  Most sureties won’t write these but at FIA, it’s our specialty.

More good news: We also write Down-Payment Bonds for Home Builders, freeing up cash and credit for new projects.

Virus or no virus, projects are moving forward, and surety bonds are needed by developers and home builders. If you have an immediate need for a Site/Subdivision bond or want to replace an existing ILOC with a bond, call us at 856-304-7348.

FIA Surety: We’re OPEN for business!

Steve Golia, Marketing Mgr. 856-304-7348

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

#170: Why Developers LOVE Subdivision Bonds

Steve GoliaLeave a comment

When developers and home builders start a new project, they must give security to the local township. This guarantees construction of the “public improvements.”

The security can be in cash, an irrevocable letter of credit (ILOC), or a subdivision bond (surety bond).

Why is a bond the best method?

  • Developers retain the use of their cash. Keep it available to acquire and finance new projects. Use it to solve problems. Remember, cash is king!
  • More control if there is a claim: They are processed through the bonding company. There is a discovery process. The developer has input and more control than with an ILOC. With an ILOC they can simply grab the developer’s money!
  • Better long term protection. These guarantees are hard to close, may drag on for years. The township is in no hurry to give up their security. It’s easy to renew the bond and you’re good for another year.

Developers and home builders love subdivision bonds – especially if they obtain them from one of the industry’s strongest players: FIA Surety. We have supported developers and home builders with subdivision bonds since 1979.

Call us for your next one or to replace existing security you have already filed.

Steve Golia, Marketing Mgr. 856-304-7348

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

Developers and Home Builders: Important News!

Steve GoliaLeave a comment

Important news for Developers / Home Builders and their Surety Bond Agents:

“Now more than ever, you need to protect your cash position.

As you start your new project, do not use cash or a cash backed Irrevocable Letter of Credit (bank instrument) to secure your obligation to the township. Instead, file a Subdivision Bond. Preserve your capital!”

We have specialized in this area since 1979. Call us for immediate service.

Steve Golia, Marketing Mgr. 856-304-7348

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

Surety Bonds: Pay Raise or Title?

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Enjoy this scene from Cheers “Woody: Raise or Title?”

We laugh at Woody being duped.  He went after the wrong prize, just like some agents when it comes to commissions.

Agents face this choice: Commission percentage or commission dollars?

You might think a higher commission percentage automatically means higher dollars, but slow down Woody: It ain’t necessarily so! Let’s do the math.

Example 1) Bond Amount: $1,000,000

Premium rate: 2% = $20,000

Commission Percentage: 30%

Commission Dollars: $6,000  

Example 2) Bond Amount: $1,000,000

Premium rate: 2.5% = $25,000

Commission Percentage: 25%

Commission Dollars: $6,250  

Interesting! A lower commission rate can yield higher commission dollars when the premium rate is higher.  When the premium rate goes lower, the commission dollars drop even more.  A 1% rate with a 30% commission yields only $3,000 commission!

What about sliding scales?  At 30% commission, the 25/15/10 rate delivers only $4,050 in commission dollars.

OK so here’s the conclusion: Focus on commission percentage and you may end up being Senior Bartender like Woody. When calculating income, the bond rate makes you a winner!

Since 1979 FIA has been a dependable provider of Bid, Performance, Site and Subdivision Bonds.  Call us with your next one.

Steve Golia, Marketing Mgr. 856-304-7348

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

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