SURETY 101 changing business plans and bonding needs .
CHARACTER Last but definitely not least , the character of the shareholders and leadership team of a construction company is a critical component of a contractor ’ s bondability . What surety companies emphasise most often is the contractor ’ s reputation for honesty , integrity , fair dealings , and doing what it says it will do during both good times and bad .
Trust and transparency is what the surety companies and underwriters look for when building a meaningful relationship with the contractor . The surety companies have to trust that the contractor is providing the correct financial , project , and continuity information .
A contractor can have sufficient capital and capacity , but without high ethical and moral standards , this will only lead to one thing in the long run , and that is losses .
For many years , most surety companies had a cardinal rule of not bonding accounts without conducting face-to-face meetings . The surety companies now often rely on the brokers to pre-qualify potential clients . Hence , the broker ’ s ability to discover any inconsistencies during the submission process plays a critical role in separating good honest clients from poor dishonest clients .
In summary , having an understanding of the 3 C ’ s of surety underwriting gives you the tools to solidify the submission package to the surety . It also highlights the contractor ’ s strengths as an operator beyond the numbers on its balance sheet and income statement . Providing insights into the shareholders and people behind the contractor is what will make the good clients stand out from the rest in the eyes of the surety . Above all , the underwriter will definitely appreciate the quality of the submission and will identify it as a tremendous value-added proposition . Knowing what to look for and asking the right questions will ultimately lay the foundation for a healthy working relationship between the contractor , the surety , and the broker .
Here at Jones DesLauriers Insurance Management , Inc ., we want to help you through the process of setting up a bonding facility from start to finish . Our strong relationships with all the major surety markets nationwide means you can benefit from some of the best programs currently available for contractors . Feel free to reach out to our Bonding Department to learn more . +
BY : ANTONY YANG , SURETY DIRECTOR , JONES DESLAURIERS INSURANCE
Prior to joining Jones DesLauriers Insurance Management , Inc ., Antony Yang was a senior underwriter at one of the largest surety companies in Canada . He uses a dedicated and comprehensive approach to apply his knowledge and experience of construction surety bonding . Antony currently holds Canadian Risk Management ( CRM ) and Associateship in Canadian Surety Bonding ( ACSB ) designations .
It ’ s not what we do that makes us different ... it ’ s how we do it !
Specialty Insurance and Surety Solutions
a step above
Learn more at www . trisura . com
Trisura Guarantee Insurance Company is a Canadian owned and operated Property and Casualty insurance company specializing in niche insurance and surety products . We are a proud supporter of the Insurance Broker ’ s Association of Canada .