How To Choose A Surety Bonding Company
Transcript: Surety Bonding Companies Comparison
Man: I need a surety bond, but I'm lost when it comes to which surety bond company to use.
JW: Ok, first let's clarify what a surety company is so you know what to do. The bonding company is the insurance carrier that is backing your bond. Most bonding companies do not deal directly with the public and require you to go to an appointed surety bond agency. A large agency like JW has a large list of bond companies to pair you up with the best fit for you.
Man: So what if I choose the wrong bonding agents?
JW: They could potentially set you up with a bonding company that does not meet the requirements. In that case, you paid for a very expensive piece of paper.
Man: What type of requirements do the surety companies need to meet?
JW: For one, the bonding company's financial strength rating may need to be a certain grade. If the grade is too low, the bond can be rejected. If the grade drops while the bond is in place, you might be forced to pay for another bond to replace it.
Man: I didn't realize that where I got my bond from mattered so much.
JW: It's also important to know that in suretyship, there is strength in numbers. Large agencies like JW can negotiate bulk bond programs to provide you the cheapest rate, simplified applications, and possibly get you approved when others can't. Larger agencies are also often able to obtain larger contract bond lines from construction bonding companies as well.
Man: Ok, ok I get it. I'll apply with JW Surety.
JW: That's the smartest decision you've made all day. Watch our other video to learn the importance of choosing the right bond agency.