This is going to be a series of blog posts on the details of underwriting for surety companies. This information needs to be given to the construction community so business owners are able to structure their companies in such a way to establish bond lines. With the private industry disappearing, many companies are hoping for public work to become their new bread and butter. This is not an easy transition to make, and without bonding public work is not available. If contractors are able to find out what surety underwriters are looking for perhaps they can work to meet those expectations in order to keep their companies alive.
This series will touch on various underwriting topics from accounting methods preferred by surety companies to why certain bond conditions are put in place. We at Surety1 believe making this information easily accessible to the general public will truly help contractors make better business decisions. Normally construction companies view surety companies as an obstacle to overcome instead of a resource for financial advice. The surety company wants to bond strong thriving companies, so they would not provide owners with poor information which could lead to a loss or bankruptcy. The goals every surety company has for their clients mirror sound financial advice any business owner should follow. Hopefully this series will help contractors realize that surety underwriters are allies, especially in these difficult economic times.