For whatever reason, it seems that many in need of a bond, procrastinate in getting the process started. This often ends in the obligee stopping the principal from operating, or not allowing them to start operating when they would like. Frustrations such as this can be avoided if one pays closer attention to state requirements and bond expiration dates. Obviously, no one is perfect and sometimes due to an oversight, you need your bond yesterday. In fact, it seems that roughly half of our clients ask us to put a rush on their bond. Since almost everyone wants their bond right away, the only fair way for us to operate is on a first come first serve basis. However, there are some items that the principal can do in order to speed up the process.
1) Be sure to respond to agent questions in a prompt manor. If your agent is asking for additional information, then give it to him/her as soon as you can. The agent will not ask for information if it is not necessary. Your application can not move forward until the requests are met.
2) Make sure all information is accurate and clear. Providing an agent information that is unclear will usually result in the agent contacting you to clarify. Misinformation could create bigger problems. A blatant lie could result in fraud charges. Stretching the truth could result in a particular bonding company declining the account based on misinformation. This would force the agent to re-market the account, adding additional time to the approval process and possibly increasing your rate.
3) Keep your agent informed of any previous bonding experiences. The surety industry is relatively small. Therefore, it is a good idea to inform your agent of any past bonding you have had.
- What was your previous surety? Telling your agent what bonding company you were previously with will prevent him/her from wasting time by submitting to that surety.
- Why did you leave them? If you left a bonding company, you should let your agent know why so they do not submit your application to a similar company. If the previous company decided no longer to write you, the agent should have a good idea as to who would be willing to.
- Have you applied to any companies recently? Many bonding companies will decline an applicant if they receive the same submission from multiple agents. They feel this is a reflection that the principal is in a desperate situation and not a good risk to write.
4) Spend the additional money on shipping overnight fees when necessary. Often, bonding companies will require original copies of indemnity agreements prior to issuance. Be sure not to ship the agreement regular mail if you are in a rush. Overnight services offer tracking and require delivery signatures, ensuring you save time.
Many of the above tips are common sense, but many of our clients seem to get frazzled, especially if they are new to bonding. JW Bond Consultants will always work hard to process all requests in a timely manor. However, certain aspects are in the hands of the client. If you follow the tips above, you will obtain your bond sooner, whether we write your bond or any other agency.