A company’s financial statements are the underwriters next consideration. Like loan officers at a bank, a surety company underwriter weighs your financial statements very heavily when determining whether you represent a risk of loss. Again, surety bonds are a credit facility, and the surety company wants to make sure that your company is good on any losses that might be sustained. On the assumption of zero risk, the underwriter is charged by the surety company with making sure that a company … [Read more...]
Archives for November 2020
Understanding the Underwriter – Contractor Questionnaire
The first thing that the surety underwriter considers from the bond application materials is the Contractor Questionnaire. This form provides the underwriter with a first, detailed look at the company. Understanding what the surety underwriter is looking for within the Contractor Questionnaire can be key to a successful application process. Some very basic elements from a review of the Contractor Questionnaire will be interpreted very carefully by the underwriter: It is important to note … [Read more...]