Our surety practice is led by agents with deep financial backgrounds and CPA designations. We speak the language of our clients, their CPAs, and surety companies, so we can maximize your bonding capacity.
If your company is bonded and insured, it demonstrates that it can follow through and meet financial obligations, which leads to more respect from your target market.
Before being bonded, applicants for surety bonds must go through a rigorous assessment process that examines financial stability and general industry credentials. Any applicant who isn't qualified will have trouble being bonded.
Being bonded creates more opportunities for commercial relationships. When going after public contracts, you will have more options because being bonded shows your company's finances are stable, consistent, and follow moral standards. Additionally, loaners will find you more appealing because they favor bonded organizations.
Security bonds are required for debt collectors, contractors, auto dealers, and private investigators. By posting a bond, you show that you can be trusted to do any work in a reliable way.
What is a surety bond?
In its most basic form, a surety bond can be described as a written commitment to ensure compliance, payment, or completion of an act. Since a three-party agreement is involved, surety is a special kind of insurance.
Who needs a surety bond?
Typically, contractors that want to work on expensive government projects must post surety guarantees.
What are the types of surety bonds?
There are four groups: contract bonds, judicial bonds, probate court bonds, and commercial bonds.
How is the cost of surety bond insurance determined?
The total bond amount determines the premium you will pay for any commercial bond.
How do I obtain a surety bond?
The principal pays a premium to the surety, often an insurance firm, to receive a surety bond. The surety bond demands that the principal execute an indemnification agreement pledging business and personal assets to compensate the surety in the event of a claim. The surety pays the claim with its own funds if these assets are insufficient or uncollectible.
Why Hotchkiss?
CUSTOMIZED COVERAGE
With 50 years of experience, we deliver tailored insurance solutions that meet your unique needs.
FRIENDLY TEAM OF EXPERTS
Our knowledgeable staff provides unparalleled guidance and support at every step.
COMPREHENSIVE OPTIONS
We have access to a wide range of coverage options for to find solutions that make sense for you.
PROACTIVE PARTNERSHIPS
We view every client relationship as a partnership, working collaboratively to protect your possible.
