How to Get Your First Bond, Part 1

This post is part of a series sponsored by Old Republic Surety.

Congratulations! Your construction client has won the bid for a new project that is bigger and better than any before. In fact, they are ready to graduate from a Fast Bond program to a standard contract bond. You’re both excited, but also, understandably, a bit nervous. Here’s information you should share with your client. You’ll also find a few hints about your own next steps as you transition from property-casualty agency only to a full-service agency with a growing specialty in surety business. We’ll share part 2 of this blog next time.

Are you ready for your first surety bond?

Maybe you’re bidding on your first public project, or the financiers of a private job require a bond. You may have previously qualified for a Fast Bond program, which is available for small projects, but now you’ve graduated to standard contract bonds.

You’re probably a bit anxious about going through a full underwriting process. But with a little knowledge and some preparation, being examined by a surety company can be a positive experience that puts your construction business firmly on the path to growth.

Start by getting yourself a professional surety agent. Talk to the property-casualty agent who insures your business. They may be very knowledgeable about the surety world. Or perhaps the agency they work for has agents who specialize in bonds. If not, ask for a referral.

Other good referral sources include your banker, your CPA (if you have one) or fellow contractors who do bonded work. Another great place to find a surety agent is the National Association of Surety Bond Producers (NASBP), which maintains a surety agent locator. Agents who are members of NASBP are leaders in the surety industry and will certainly be able to help you.

The more experienced the surety agent, the easier it’ll be for you to get a bond. Here are four reasons why you should work with an agent who specializes in surety:

You can get a head start on the bonding process by gathering your company’s pertinent financial information. A knowledgeable construction CPA can produce the proper statements you’ll need.

Here are the items you’ll be asked to provide the surety:

If you have any questions about anything regarding surety, reach out to an Old Republic Surety branch nearest you.