What to Consider When Choosing a Surety Broker

There are several factors to consider when selecting a surety broker. With a variety of options in today’s marketplace, the decision-making process can be complex. To help navigate this important decision, we’ve outlined ten factors your business should consider when choosing a surety broker.

1) A Focus on Bonding

True surety experts offer numerous advantages, including faster turnaround times, enhanced market access, professional service, and competitive pricing. These experts can significantly benefit your business by improving efficiency and positively impacting the bottom line.

2) E-Bonding and Surety Bonds Issued Directly in the Broker’s Office

Established relationships between professional surety brokers and preferred Surety Markets provide the broker with in-house issuance limits for client accounts.This allows the broker to issue bonds directly from their office without seeking additional approval from the surety market, saving time and resources. Moreover, government agencies’ shift towards e-bonds has streamlined the bidding process, eliminating the need for physical pickup or waiting for couriers.

3) Facility Growth

Your bonding facility should mirror the growth of your business and the industry where it operates. A proactive surety broker will conduct an annual facility review to ensure that your bond limits align with your success. This foresight prevents unnecessary delays when seizing new opportunities.

4) Claims Support and Labour and Material Assistance

Professional surety brokerages boast dedicated claim experts who assist clients with any questions or issues related to bonded contracts. Additionally, they provide crucial Labour and Material payment bond assistance to manage payments efficiently and ensure timely disbursements. These brokers facilitate swift and efficient processing of potential claims through strong relationships with surety market claims departments.

5) Client References

Established surety brokerages with longevity in the industry have steady client relationships that validate the quality of service offered. Do not hesitate to request client references to gauge the client experience and service you can expect.

6) Years of Experience

Most reputable surety brokerages have a long-standing history within the industry and are known for their expertise, professionalism, and competence. While new entries might label themselves as experts, seasoned brokerages bring proven experience and track records to validate.

7) Underwriting Background

Several top surety brokers began their careers as underwriters in the industry, which presents a unique perspective on how surety markets evaluate businesses. This firsthand experience enables brokers to assess businesses effectively and address potential concerns before engaging with the market, establishing bonding facilities efficiently.

8) Association Memberships

Active participation in industry and construction associations indicates a dedicated surety broker committed to contributing to growth and development. Brokers involved in industry events and associations demonstrate their commitment to stakeholders and the industry.

9) Turnaround & Responsiveness

In a fast-paced world, a reliable surety broker should have the ability to swiftly process bond requests. While advanced notice is beneficial, responsive brokers can accommodate opportunities by turning around bond requests expediently, ensuring clients do not miss out on potential endeavours.

10) Industry Changes

A knowledgeable surety broker remains crucial during times of evolving regulations. A well-informed broker can navigate changes in bond applications under updated legislation, distinguishing between successful and flawed claims.

The decision to choose a surety broker should not be without careful consideration. By considering these essential factors, individuals and businesses can make informed decisions when choosing a surety broker to support their operations and facilitate growth within the construction industry.

If you are seeking a seasoned and dedicated team to manage your surety needs, connect with Gifford Carr for a free consultation. With over 70 years of experience and a commitment to professionalism and timeliness, we can assist businesses of all sizes and offer expert underwriting experience and a comprehensive suite of services tailored to meet your bonding requirements.