The Financial Fallout from a Terminated Contract

Nina Conner News

Posted by Arthur Sonneland, for OldRepublicSurety No one wins — the principal, the obligee or the surety — when a principal is terminated on a bonded project. A termination will generally require the surety to step in and 1) find another contractor to complete the project, 2) complete the project itself or 3) offer a financial settlement to absolve itself …

How the Cost of a Contract Bond Is Determined

Nina Conner News

Posted by Todd Taylor, AFSB, CPCU, for OldRepublicSurety What goes into determining the cost of a contract bond? Here is a basic introduction. Common Contract Bonds These are some of the most common contract bonds: Bid bond—surety consents to provide performance and payment bonds, if the contract is awarded Performance bond—guarantees performance according to contract, bond terms Payment bond—guarantees payment …

It’s Not Just About Rates. It’s About Valuable Service

Nina Conner News

Posted by Shayne Albine, for OldRepublicSurety In today’s world, we are surrounded by advertisements. And whatever the product is, advertising consistently drives price to hook new customers. But is that the best approach? Think about advertising through the eyes of a consumer. I like to use the example of purchasing a new vehicle, which many of us can relate to. …

How to Prequalify a Surety — and Why It’s So Important

Nina Conner News

Posted by Todd Taylor, AFSB, CPCU, for OldRepublicSurety The number of surety companies represented in any region can make the task of prequalifying or differentiating among them challenging to say the least. Many bond agents and brokers have access to more than 30 surety company markets, and there can be important distinctions between each of them that should be understood …

What’s the Difference Between Construction Insurance and a Surety Bond?

Nina Conner News

By Sarah Licata for AssuredPartners  Construction insurance and surety bonds both provide different types of protection on a construction project, but a common misconception is that a surety bond is another type of insurance. So, what is the difference between the two? What is Construction Insurance and How Does it Work? Construction insurance is an agreement between two parties: The …

Construction Company Do’s and Dont’s of Smart Contract Bidding

Nina Conner News

Posted by Collin Belcher, AFSB, for OldRepublicSurety This article originally was published by the National Association of Surety Bond Producers and is being republished with the express permission of NASBP. Placing a bid on a public construction project comes with a host of risks for both contractors and public entities. A surety bond is an essential risk management tool for …

Workers’ Compensation Safety Records Can Affect Your Bond Capacity

Nina Conner Uncategorized

Posted by Nancy Germond, MA, ARM, AIC, ITP, SPHR, SHRM-SCP, for OldRepublicSurety Once an owner or developer selects your company for a construction project, one of your many tasks is to ensure that your workers’ compensation program meets all contractual requirements. On larger projects, construction contracts normally detail which contractor is responsible for ensuring all workers have workers’ comp coverage. …

Contractor Capacity: The oft neglected third C

Nina Conner News

Posted by Daniel Christianson, AFSB, for OldRepublicSurety Anyone who has dealt with surety has come across a reference to the three Cs of underwriting: Capital Character Capacity These three criterion have been constants of the surety industry since its inception. Read more about the three here>>>

Cash Flow: An Important Measure of Your Company’s Health

Nina Conner News

Posted by Wayne Messick, AFSB, for OldRepublicSurety The definition of cash flow is pretty straightforward: It’s the money that comes into your business minus the money that goes out. It’s a part of your CPA-prepared financials and is usually shown in a separate cash flow statement. Yet cash flow is more than an accounting exercise. It’s a key financial indicator …

I’ll Be There for You

Nina Conner News

Posted by OldRepublicSurety Dan Pope, Senior Vice President of Underwriting for Old Republic Surety, recently joined NASBP “Let’s Get Surety” podcast hosts Kat Shamapande and Mark McCallum for episode No. 59 about relationships in the surety business. The hosts asked Pope to define a relationship-based surety. It’s “a surety that’s in the business for the long haul, both in the relationship …