WHERE DO I START?
The first step in surety bonding is to find a qualified agent such as Glenn A. Evans & Company to guide you through the bonding process. We will gather and analyze information on your company to gain an understanding of your business and your bonding needs. We then prepare and submit your account to the surety company that best matches your company’s profile and needs. If necessary, we will facilitate a meeting between you and the prospective surety company. As an experienced and knowledgeable surety bond agent, we are an essential link between you and the surety company and will maintain communications with you both.
While most surety companies are large insurance companies, qualifying for bonds is more like obtaining bank credit than purchasing insurance. Before committing its assets to guarantee your company’s contracts, the surety company will want to get to know you and your business well. The underwriter will need to gather and carefully analyze information about your company’s history, current financial position and future plans before agreeing to provide surety bonds.
The surety company will want to make sure that you are of good character and have the necessary experience and equipment to perform the work. They also need to make sure that your company has the financial strength to support the project and have a history of paying your subcontractors and suppliers promptly. You will need to be in good standing with your bank and have an established line of credit.
You can begin the bonding process by downloading and completing our full bondkit. As mentioned above, surety bonding is a credit function. It is important to give us sufficient lead-time to establish bonding for your company.
While it usually takes time and effort to establish your first bonding relationship with a surety company, once the relationship is developed, surety bonding is usually a matter of updating the surety’s file. The surety will continuously reevaluate the overall performance and financial position of the contractor. While positive changes may serve as the basis for an increase in the amount of bonding available, adverse changes may cause the surety to reduce or terminate the bonding program. In either case, it is extremely important to regularly discuss your company’s progress with your professional bond agent who can usually provide sound business advice.