Who Are Surety Bond Producers?
Business professionals known as surety bond producers offer contract surety bonds to construction-related entities or commercial surety bonds to businesses and individuals, including Alpha Surety Bonds. The initial step to obtain surety credit depends on professional bond producers. Obtaining surety bonds together with surety company credit lines demands thorough detailed procedures for each contractor bid application. The prequalification process to obtain surety credit becomes challenging during surety company underwriting when handled by someone without certification as a bond specialist.
To operate as a bond producer in their business territory states they must obtain state department of insurance licensing. The process for obtaining a bond producer license requires completing educational requirements alongside successful completion of both an examination and passing the background check. Professional surety bond producers possess comprehensive understanding of surety products together with surety market dynamics and business approaches and underwriting procedures of different sureties. The main activities of surety bond producers concentrate on both working with the surety market and helping construction firms obtain surety credit while they differ from standard insurance agents.
Bond producers evaluate construction firms by assessing their capabilities and make necessary suggestions which help firms satisfy underwriting criteria set by surety companies. Through their professional relationship bond producers offer bond principals the benefit of professional referrals for certified public accountants attorneys and bankers.
The development and expansion of construction firms receive substantial benefits from sustained positive working relations between bond producers and contractors when securing contract surety bonds.
A firm’s selection of its bond producer plays a crucial role in achieving both success and growth. Construction firms should look at this information (and other factors) when selecting their bond producer.
Does the producer maintain an active license to work in your jurisdiction along with the project location?
Does the producer maintain a solid reputation based on his integrity?
How many clients from the construction sector does he serve?
The bond producer demonstrates competence in both the construction sector and the construction process including the management and administration of construction contracts.
How well does the producer understand construction accounting procedures particularly his ability to analyze financial statements, work in progress and cash flow?
What number of sureties does the producer have working relationships with?
Can the producer issue bonds as an official representative of sureties according to their authorization?
Has the producer built strong connections with underwriters from surety firms?
The producer maintains strong professional connections with Certified Public Accountants along with lawyers and financial lenders.
The producer shows what level of interest and knowledge they hold regarding construction markets operating at local, regional and national levels.
To what extent does the producer participate in American Subcontractors Association combined with Associated Builders & Contractors and Associated General Contractors of America and National Association of Surety Bond Producers within their local or national communities?
The producer maintains regular client communication through office visits and site inspections as well as newsletters.
The producer offers additional services which support clients in their business requirements.
