Rancho Mesa's Alyssa Burley and Account Executive of the Surety Department Andy Roberts talk about matching contractors with the right surety bond company.

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Director/Host: Alyssa Burley

Guest: Andy Roberts

Producer/Editor: Lauren Stumpf

Music: "Home" by JHS Pedals, “News Room News” by Spence

© Copyright 2023. Rancho Mesa Insurance Services, Inc. All rights reserved.

transcript

[Introduction Music]

Alyssa Burley: Hi! This is Alyssa Burley with Rancho Mesa’s Media Communications and Client Services Department. Thank you for listening to today’s top Rancho Mesa news brought to you by our safety and risk management network, StudioOne™. Welcome back, everyone. My guest is Andy Roberts, Account Executive in the Surety Group with Rancho Mesa. Today, we're going to talk about matching contractors with the right surety bond company. Andy, welcome to the show!

Andy Roberts: Thank you. It's great to be here, Alyssa.

AB: Like any great matchmaker, a surety bond agent like yourself needs to fully understand both parties in order to find the perfect match between the contractor and the bond company. And last year, you and I talked about what to consider when looking for a bond agent or a surety bond agent. You highlighted experience, value ads and agent appointments. And, that leads us into today's discussion. Why are agent appointments with bond companies important when trying to match a contractor with an appropriate surety?

AR: So, agent appointments are a very important factor because one of the most important roles of a surety bond agent is making sure that their clients are paired with the right surety bond company. In order for an agent to be able to make that match, they have to have appointments with a variety of highly rated bond companies and also have an in-depth knowledge of each bond company’s appetite.

AB: Okay, so options are always good when trying to find a perfect match. You don't want to settle for an expensive bond because the agent doesn't have the relationships with the right surety companies. Now, how should a surety bond agent determine which sureties are going to be a good match for the contractor that they're trying to place the bond?

AR: So, in order to probably match a client with the bond company, it becomes vital that the agent takes the time to really understand the client's business, review their financials, review the business plan, and get a firm handle on what the contractor’s goals are for the company. Doing this will allow the agent to get a thorough understanding of the client's specific bond needs and will help them pare down the marketplace to a handful of bond companies that would be the right fit.

AB: If you're taking so much time to thoroughly understand the contractor’s business. I would assume it's equally important to get to know the appetite of the surety. Is that correct?

AR: You are absolutely correct there. There are more than 100 bond companies out there and they are all a little different. They all have different limitations with regards to the size bonds they can write. They will have different underwriting standards for when a client is required to start providing CPA reviewed financials. You know, they have different classes of business that they favor. Some bond companies value personal financials more than others. The list goes on and on and on, making it vital that agents have a thorough understanding of their markets and have good relationships with their underwriters so that clients are placed with the bond company that will be a good partner for them as they look to accomplish their goals.

AB: All right. And, that's why it's so important for business owners to share with their bond agent and find someone that is knowledgeable about their company, the industry, but also what the surety companies are really looking for in a risk.

AR: You are spot on, once again. It's important that an agent possess a deep understanding of their business and of their markets because contractors need to be able to trust that their agent has them placed with the bond company that is the right fit for them. You know, at Rancho Mesa, we have long standing appointments with over 20 highly regarded bond companies in addition to close working relationships with their underwriters.

AB: Great. So, Andy, if listeners have questions about their surety relationships or their bond program, what's the best way to get in touch with you?

[Outro Music]

AR: I can be reached at (619) 937-0166 or at aroberts@ranchomesa.com. 

AB: Andy, thanks for joining me in StudioOne™.

AR: You're welcome. It's always a pleasure.

AB: This is Alyssa Burley with Rancho Mesa. Thanks for tuning in to our latest episode produced by StudioOne™. For more information, visit us at ranchomesa.com and subscribe to our weekly newsletter.