This put up is a part of a collection sponsored by Previous Republic Surety.
“We’ve focused tight turnaround instances from submission to approval utilizing Previous Republic Surety’s (ORS) FastBond course of — the sooner, the higher,” says Todd Taylor, CPCU, AFSB.
As an ORS Bond Supervisor, Taylor has seen the favorable influence of FastBond, which has been accessible for greater than 10 years. “We’ve managed to simplifythe bonding course of for brokers by providing limits as much as $1 million primarily based on credit score solely,” he says. “And since there’s no want for extra monetary info and no CPA required, that saves great time and trouble. Throughout the Quick Bond program, Previous Republic Surety will take into account non-residential completion bonds as much as $250,000 in bond penalty on credit-based underwriting. Increased limits could be thought of with extra underwriting info.”
What if a consumer does require extra? Taylor explains that they’ll nonetheless use FastBond to safe as much as $2 million single or combination by including present company and private monetary statements to their utility — nonetheless no CPA involvement needed.
Taylor notes a current uptick in FastBond exercise as properly. “We’ve got a historical past of writing accounts utilizing widespread sense underwriting, and Previous Republic Surety is happy with our partnership with brokers who write accounts that could be smaller or just have few or very rare bond wants. These are the sorts of accounts which might be an actual plus for thus many brokers. Though they could not qualify for our contract aspect, they symbolize an actual mainstay of the development trade.”
Protecting brokers aggressive
To remain forward of the curve and preserve a management place in these smaller account markets, Previous Republic Surety requests agent suggestions and screens trade situations. “As in different sectors, building prices have risen throughout the board, making the identical threat are available in at a a lot greater value than it did just some years in the past,” Taylor says. “We’ve continued to regulate our limits as wanted to maintain tempo with these adjustments, which is why we not too long ago elevated limits from $750,000 to $1 million primarily based on credit score. The FastBond utility is so simple as earlier than, however greater limits preserve our brokers aggressive, and so they can qualify bigger accounts with much less want for underwriting. Better of all, even at these greater limits, the fast turnaround continues to be potential, which could be essential for successful a bid.”
As Taylor notes, contractors usually postpone tackling bond points till the top of a bid course of, and it’s common for them to attend in an agent’s workplace for bond approvals. “Bid time strain could be intense,” he says. “Our fast turnaround alleviates a few of this stress.”
Whereas many brokers are already comfy with the FastBond utility course of, the ORS workforce is able to leap in and supply steerage for any brokers who’re simply getting began in bonds or who would possibly need assistance with the primary few functions. “We are able to velocity up the educational curve and double-check their work till they’re comfy doing an utility on their very own,” Taylor says, “However as a result of the shape is so simple and the bond is primarily credit-based or solely requires current monetary statements for greater quantities, most brokers turn out to be adept fairly rapidly.” He provides that Previous Republic Surety can even present a bond-ability or pre-qualification letter if that’s a requirement earlier than any formal bonding. “We’re at all times pleased to confirm {that a} subcontractor can qualify for a bond if that’s all they want in an effort to submit a bid,” he says.
FastBond will also be a useful stepping-stone for brokers who wish to assist their purchasers transition into bigger initiatives. “Few purchasers are capable of leap to a normal bond program in a single day, and a few simply don’t wish to make the extra required investments, like CPA involvement,” Taylor says. “With FastBond, the upper limits assist brokers preserve extra of their rising accounts till they’re able to graduate to our contract aspect.”
FastBond benefits
Whereas Taylor considers the upper limits, fast turnaround and simple utility course of amongst FastBond’s major advantages, he additionally highlights their bond availability in all 50 states and their consideration of all building trades. “It is a answer that’s preferrred for shorter period initiatives in that candy spot of $1 million to $2 million, however we have now loads of flexibility to debate variations,” he says. “Even when a job is projected to be barely greater, we would like brokers to name us; we’re at all times prepared to debate the underwriting specifics and dig into the main points of a mission to succeed in an approval. Previous Republic Surety has at all times primarily based our bond approvals on extra than simply the spreadsheet numbers.”
Taylor provides that the corporate will proceed to guage and modify FastBond as wanted. One current enchancment is the addition of safe DocuSign digital signatures for functions. Different workflow options are in fixed evaluate.
“Providing a extra streamlined bonding course of for smaller exposures is likely one of the finest methods to develop alternatives for our brokers,” he says. “And Previous Republic has actually supported our efforts to enhance small account servicing. In any case, extra bonds imply extra development, and simply because a bond could also be thought of small by trade requirements or a consumer has an rare want, they’re nonetheless a necessity. We’re right here to make getting them as straightforward as potential for our brokers.”
This weblog was initially revealed on the Previous Republic Surety web site. It’s reproduced right here with permission.
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