Surety Bond Rates | Policy Insurance
Performance BondMore Like This

In light of recent news stories about fraudulent surety bonds, questions about the legitimacy of a surety bond demonstrates how important it is to verify the authenticity of the surety bond, a process that takes minutes but could prevent thousands of dollars in losses later. Continue »

FraudMore Like This

Every time the economy slows into a recession, it seems to correlate to a higher incidence of fraudulent or bogus bonding. During the past three years, there has been an uptick in firms with very similar websites and verbiage. Contractors must take precautions to prevent being duped by unscrupulous brokers purporting to represent bonding programs willing to underwrite contractors “regardless of credit.” Continue »

Claims ManagementMore Like This

Subcontractor defaults are seldom expected yet remain a serious risk for general contractors to manage as part of a successful construction project. Generally, they occur when a subcontractor fails to meet its contractual obligations. Financial insolvency is among the leading cause of subcontractor defaults. Other hallmarks cited for defaults include the inexperience of the subcontractor, over-extension on other projects, and lack of effective business systems and practices such as estimating or accounting.

Defaults happen not only during periods of economic decline but also in periods of prosperity. In fact, attention to default risk should be heightened during periods of recovery, during which new inflows of work can exceed the capacity of a contractor’s balance sheet. Continue »