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QUALIFICATION PROCESS |
TYPES OF SURETY RATES
The final area of discussion, the surety companies generally fit into three broad categories:
- Preferred Rate Companies - Those writing bonding at a lower rate for preferred contractors - generally contractors with a long and successful track record, a strong financial position, and excellent financial reporting.
- Standard Rate Companies - Those writing bonds at the rates established by the Surety Association of America. These apply to the broadest cross section of contractors.
- Specialty Companies - Those charging a higher than standard rate for more difficult to underwriter cases. These are typically small contractors just starting out without a long tract record and usually a weaker financial condition. Such cases are often bolstered with some form of collateral.
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In conclusion, you can see that the qualification process is very thorough and involved. At the beginning of this program, the need for the services of a professional surety bond agent was stressed. Please feel free to contact
The Bond Department and Associated Agencies
One of our professional bond agents will be able to handle your bonding needs.
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