Questions to Ask Your Surety Underwriter & Bond Producer

Reprinted from ABC’s Construction Executive Surety Bonding Section – November 2006.

  • What value in the way of services, input, and advice will you provide me?
  • How can you help me grow in a disciplined way?
  • What is your success record and history? What percentage does the construction contract bond business represent in the overall P&C operation?
  • Do you have sufficient staff to handle my needs?
  • How much experience does the underwriter have in underwriting construction firms?
  • What primary market segments does the surety company handle?
  • What are the surety’s financial results over time?
  • Are you licensed in the proper jurisdiction?
  • Is the surety A.M. Best rated or listed as an approved surety on the U.S. Department of Treasurer’s Circular 570: Federal Treasury Listing of Qualified Sureties?
  • Is the underwriting authority local and sufficient to meet my day-to-day needs?
  • What individual sized bond and total aggregate are right for me?
  • How does the surety perceive my risk profile? What are the surety’s expectations?
  • Does the surety have a professional claims department, or does it outsource its claims to third parties?
  • Do your understand and support my business plan?