The Independent Agent’s Role in the Surety ‘Triangle of Trust’

Nina Conner Uncategorized

Posted by Darrel Lamb, CPCU, AFSB, for OldRepublicSurety

Any definition of surety will list the three signing parties in a contract surety relationship: the principal (or contractor), the obligee (or owner of the project) and the surety. But often overlooked is the trio of surety players who work together for mutual benefit: the surety, the principal and an independent agent.

Steve Hanson, recently retired independent surety agent, Eugene, Oregon, describes that three-way surety relationship as a “trust triangle.” He observes that the “trust derived from shared experience and evolving (over time) mutual respect, both professional and personal,” is the most important building block of a business relationship. That is especially true for large surety contract accounts because they are not handled transactionally.

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