Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.

You may know that the surety client/agent/underwriter relationship is different from other lines of insurance.

Whether you are new to the bonding process, or have been doing bonded work for years, there is a handful of important items that can assist with securing the best relationship for your bonding needs. It boils down to a few key areas: timely information, accurate information, and regular communication.

For contractors who only need small or infrequent bonds, communication may be very basic and minimal. For example, if we establish your support with a surety who has an “express program,” these programs are based on clean, personal credit and perhaps some track record of completed projects. So, there may not be a need for as much communication as there would be if an account is in a more “standard” or “preferred” program. We always want to understand and share details on the jobs you are looking to do, and have completed, but there’s generally no need for a personal relationship with the underwriter in these types of programs.

Once you are established with a more standard surety relationship, the timely information the surety expects to receive is key. However, with regular and clear communication, we also hope to add value to the relationship between our clients and the underwriter in support of the contractor’s needs. 

Communication about financial information will ensure that proper attention is given to the accurate details that confirm important benchmarks. Questions like: does equity track? is the operation profitable? how is the cash looking? are percentage of completion entries noted and match what’s on the work in progress report (WIP)?

Regular communication will not only include this financial information, but also conversations about the work you have completed and the work you will complete. Be prepared to provide trends from year to year, profitability year-to-date, and specific information on current or completed jobs noted on the WIP (whether certain jobs are bonded or not). All of this information is designed to better understand your operational processes and goals, thus presenting the most complete information to the surety.

Being proactive in this relationship is always our goal. We will do our best to facilitate the information that is needed, and work to share the information that will facilitate the best support for you.

We are your advocate with the surety underwriter – and happy to facilitate these conversations and/or meetings to ensure that your surety needs are adequately addressed and met.

Regular and open communication with your surety agent and underwriter, like any relationship, is a Best Practice that will serve us all well.

To discuss your surety program, contact me at awright@ranchomesa.com or (619) 486-6570.