Have a look behind the curtain. Ever wonder about the performance bond underwriting guidelines of qualifying for performance and payment bonds? You are a construction contractor, the surety underwriters are not people with a construction back ground yet they are the ones trying to pre-qualify you. So what are the sureties looking for? Below is an actual new account narrative …
Markel surety, one of the largest providers of surety bonds for the cannabis industry in California, has announced it will not accept new applications effective immediately and will be non- renewing existing bonds effective 1-1-2022 and later. No reason has been given as to why they are exiting this market segment. Most insurance companies have chosen not to participate in …
Performance Bond Underwriting Basics
What are underbillings and why do performance bond underwriters care about them? Let’s start with some basics. Once a contractor gets to a certain level of bond needs (say projects over a million dollars on a regular basis)the performance bond underwriters will increase the amount and quality of the underwriting information. One key requirement will be …
Any contractor planning on doing public works projects will require the services of a surety to provide performance and payment bonds. When meeting with your local performance bond underwriter you may hear the term “profit fade”. So what is profit fade? Lets start by reviewing some accounting terms. The surety industry (as well as the IRS) will require a contractor …
The Debt Collection Licensing Act (Fin. Code § 100000 et seq.) (DCLA), which is operative starting on January 1, 2022, requires any person engaging in the business of debt collection in California will need a California Debt Collector License, issued by the Department of Financial Protection and Innovation (DFPI). (Fin. Code § 100001(a)). If you are a debt collector collecting debt …
The Debt Collector Licensing Act (Fin. Code § 100000 et seq.) (DCLA), which takes effect Jan. 1, 2022, requires any person engaging in the business of debt collection in California to obtain a California Debt Collectors License, issued by the California Financial Protection and Innovation (DFPI). (Fin. Code § 100001(a)). If you are a debt collector collecting debt in the state of …
The Federal Maritime Commission (FMC) regulates international oceanic transportation. FMC requires Ocean Transportation Intermediaries (OTI’s) to show proof of financial strength through a FMC-48 surety bond, or OTI bond. The Federal Maritime Commission Bond ensures the protection of the public and the government from any possible harm caused by an OTI. OTI Freight Forwarders (OFF’s), as well as non-vessel-operating carriers (NVOCC’s), …
Occasionally, established contractors that do not do bonded work in normal course of business are asked to provide performance and payment bonds. One issue that sometimes arise in these situations is the contractor does not engage a construction oriented CPA to provide review quality financials statements. Performance bonds without CPA financials on a small scale may not be much of …
The Florida Car Dealer Bond is a requirement of the Florida Department of Highway Safety and Motor Vehicles for all motor vehicle dealers to provide a surety bond in addition to a completed application packet.
Why Do You Need This Bond?
If you are to do business in the state of Florida as …
Any project that is funded with Federal money and is over $250,000 in size will require performance and payment bonds. President Biden has just proposed a 2 trillion dollar investment in infrastructure. The overwhelming majority of this work will be bonded; meaning the contractor(s) bidding on this work will need to secure bid, performance and payment bonds.
There will not …
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