Goldleaf Surety – A Partner for Successful Contractors

Construction is a cyclic industry and, to survive, company leadership needs to be prepared to manage their company through those ups and downs.  One way to be prepared is to have a strong relationship with your surety provider.  According to Ed Titus, SVP, Surety for Philadelphia Insurance, “A company may be doing everything right, but getting connected to the right surety carrier really depends on having an experienced surety agent who understands what carriers are looking for and understands … [Read more...]

Goldleaf Surety – Building Solid Relationships

Relationship.  It’s a word used in many facets of our lives.  We have relationships with friends, family, neighbors, co-workers, customers.  The list is endless. ( defines relationship as a state involving mutual dealings between people or parties or countries.   While the Oxford Dictionary ( defines relationship as the way in which two or more people or groups regard and … [Read more...]

Surety Program and Year End Considerations

It's that time of year  again to address how your company's year-end planning issues can affect your company's bonding program - both capacity as well as terms and conditions. The "quality" of year-end statements is a topic often discussed by Goldleaf Surety's Account Specialists with our clients.  In our December 3, 2014, blog post Surety Bonds and Year End Consideration we discussed the "quality" of a company's year-end financial statements and how these can affect a company's surety  … [Read more...]

A Surety Bond is NOT Insurance

By:     Craig F. Martin of Lamson, Dugan & Murray, LLP There are fundamental differences between insurance and surety bonds and knowing the difference will help you avoid making mistakes, should claims arise.   This blog will discuss the differences between insurance and surety bonds. Insurance An insurance policy is a two party contract between an insurer and the insured.   The policy is intended to protect the insured.   The cost of insurance is calculated by the insurer based on … [Read more...]

Importance of Providing Notice to the Surety Company

By:     Craig F. Martin of Lamson, Dugan & Murray, LLP A recent case out of Missouri emphasizes the importance of providing notice to a surety when a bonded subcontractor is in default.  When the question of whether a surety is obligated under the bond is in the balance, notice is crucial. In CMS v. Safeco Insurance Company, Safeco provided a performance bond to a subcontractor for the benefit of CMS. The bond specifically provided: PRINCIPAL DEFAULT.  Whenever the Principal … [Read more...]

Surety Bonds and Bank Letters of Credit Comparisons

By:  Jack Anderson, President This is part 2 in a series of blog posts where we will continue to explore surety bonds and bank letters of credit – what each is, their differences, and the advantages and drawbacks with each. How is each obtained? The contractor obtains the bond through a surety bond agency or a surety bond producer such as Goldleaf Surety Services. The contractor obtains the LOC through a banking or lending institution. What is your borrowing capacity with … [Read more...]

Tips to Maintaining Good Surety Credit

One of the topics covered at the January 20th Contractor Seminar in St. Cloud was key elements to maintaining surety support. Goldleaf Surety Services' President Jack Anderson emphasized that the key element is communication. Surety companies do not like surprises when it comes to a company's financial picture. Some of the key items that companies need to communicate with their surety and their surety underwriter include: Change in Ownership Surety companies need a correct indemnity … [Read more...]

In Surety Relationships Matter

"Surety underwriting is the "art" of applying subjective thinking and analysis to the "science" of the facts and truths." (National Association of Surety Bond Producers, Commercial Surety Fundamentals). Goldleaf bond specialists, staff and management spent an enjoyable day of fishing and fun with representatives from one of our surety partners.  Opportunities such as these provide Goldleaf Surety the chance to get a better understanding of how the surety company's underwriters evaluate the … [Read more...]

What is Bonding Capacity?

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...]

Goldleaf Surety Attends 2013 Capitol Club

Goldleaf Surety was invited again this year to attend Capitol Insurance Companies’ Capitol Club. The Capitol Club represents Capitol Insurance Companies’ 35 most profitable agencies across all segments of the company in 2013. This year’s event was held at Casa Del Mar Hotel in San Diego, CA. Representing Goldleaf Surety were Jack Anderson, President and Brad Koosmann, Account Specialist. The event included many exciting site-seeing opportunities, as well as an Awards Reception and Dinner … [Read more...]