There is always a questionnaire that must be completed when Surety Bonds need to be issued. Why? Because underwriters require basic information quickly. The app will ask for information about the company, including its location and ownership. It also provides facts about the operation’s history.
So many questions! Do they all have any relevance? Are they all necessary? They aren’t all equally important. The most critical question in the app is actually one.
Let’s see how well you can underwrite. These are common questions for bond apps. These are the hot questions or background music. Which question is most important to bond underwriters
1. Q. Some underwriters may decline to read applications if the applicant has less than three years of business experience.
2. Q. This is a crucial question that many underwriters find a deal killer. They might not be interested in hearing about the BK and any subsequent developments. They may not be able to support such applicants due to their reinsurance.
3. Q. This is a question about continuity. How will the company survive without crucial employees? If the boss is killed, how will the bonded jobs be completed?
4. Q. Is there full corporate and personal indemnity for all owners, spouses, and affiliates? This is vital because it is a requirement in most cases, and some applicants may be reluctant to provide full indemnity.
**All questions are pertinent. They are there because they are relevant. **
This is what you should think about.
They all matter. The question that leaps off the page for an underwriter is unanswered.
Why is it that people skip one question when filling out an application? You can’t just skip one question out of carelessness.
If you don’t have any information, we can assume that “N/A,” which is an option for a question not relevant to your situation, or “Unknown” are options. A blank means that the reader isn’t sure how to answer it.
During the surety underwriting process, many facts are double-checked. The market trusts the applicant to be honest and transparent for the majority of the information. They rely on full disclosure and have the right to it as the guarantor.
Please, don’t forget to ask any questions. The client is often the first chance for the underwriter to meet them. Answer fully and add comments if necessary.
Steve Golia has extensive experience providing bid and performance bonds to contractors. He has been solving bond problems for contractors for over 30 years and helping them succeed when others have failed.
Bonding Pros has the market access and underwriting talent you need. All this is complemented by exceptional service and easy access.