One of the most commonly asked questions I receive is “Do you really need all that information?!” And the answer is – YES. And it relates back to the Four C’s of surety that we discussed in an earlier blog post.
Surety bonds are underwritten as an extension of credit, and the underwriting considerations are similar to those used by a banker in evaluating a customer.
There are many factors involved when a surety is underwriting to determine if they are willing to entertain a particular risk – the type of work being performed, the breakdown on the costs, the bid spread, the bond forms being used, the form of the contract to be bonded, the financial/credit position of the company that needs the bond, the financial/credit position or the company’s owners, etc.
The more thorough and comprehensive an underwriting file is when submitted to a surety for review, the more likely it is the surety will get a complete understanding of the company, its owners and its capability. With a comprehensive submission, Goldleaf is able to help you obtain the surety capacity you need.
So, even though the initial list of underwriting items can seem a bit overwhelming, all the information is an essential part of Goldleaf’s process in obtaining the best surety relationship available for your company.