I’ve had my Surety Bond for years and now I can’t get approved. What can I do?

Why is this Happening?

New bonding requirements by the states.

Economy downturn has tightened qualification standards.

What Hurts Bond Qualification?

o Reduced Credit Scoreo Stricter Underwriting Guidelineso Loss of Assetso Previous Bond Claims

“But I’ve Had this Bond for Years”

Every year, renewal has been easy. Why now with the headache?

Guess what . . .

It’s not your fault.

It’s time for action.

What We Recommend . . .

Broaden your search for someone to write the bond.

What We Recommend . . .

All insurance companies have agency minimums.

If you’re problem is credit, you need an agent who can write sub-standard business.

“Sub-Standard” Explained.

Sub-standard agencies write bonds at higher premiums based on credit.

They may require:o a Bank Letter of Credit (LoC)o Cash Collateralo Personal Promissory

Bank Letter of Credit - LoC

A Letter of Credit is essentially a document:

- Issued by a bank- Guaranteeing your financial obligation.

Cash Collateral

Cash Collateral refers to you postingcash that can be returned after a creditscore increase or 1-2 years of a good ‘track record’.

Personal Promissory

Bonds issued off of your business’financial health may require the ownerto personally back the bond.

Does this solve the problem?

It can.You can get your bond with a larger agency, who has sub-standard providers.

Don’t ignore this - Get bonded.

Our Takeaways . . .

Broaden your search.

Talk to more agencies.

Seek out Sub-standard options.

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Produced by the SuretyBonds.com Education Center