Bonding capacity is an important issue for contractors as their capacity will determine which projects they can pursue. A company's bonding capacity is generally a single and an aggregate limit. Bonds are issued on a per job basis and the single limit is the per job amount a contractor is allowed for any one contract and bond. The aggregate is the maximum a contractor can have at any one time, and is comprised of the following: Remaining costs to complete on any projects … [Read more...]
Archives for July 2014
Avoiding Surety E & O Claims – Part 3
By: Jack Anderson, President of Goldleaf Surety Common Surety Handling Misstep No. 6: Failure to Adhere to Conditions & Exclusions of Line of Authority. In instances where a surety has extended a line of authority to an agent and the agent has issued a bond that falls outside the line of authority, the agent will be held accountable for any loss a surety experiences as a result of the agency mishandling its authority. Ways to Avoid Surety E&O Claim: Train all associates on … [Read more...]