There will come a time in a person’s life wherein he or she will be in need of a surety bond producer. Just like the types of surety bonds, the number of surety bond producers are aplenty.
For first time surety bond buyers, choosing which one to go for can be a tedious task. Even seasoned surety bond buyers who wishes to switch surety bond producers might be having a hard time as well.
It goes without saying that picking the right one will help you reach your goal in whatever field you are in. Given that fact, it is also safe to say that the opposite is true. No one wants to have the trouble of paying a bond only to find out that there will be a delay in its issuance, or worse, it will never be issued.
Time is of the essence when obtaining a surety bond. Some obligees – as dictated by an underlying law – will provide a small amount of time for the principal to get bonded. If you are new to the world of surety bonds, half of that time will be wasted on scouring the right kind of producer that will suit your needs.
In order to save you some time and headache, we will list down the qualities that you should look for when choosing a surety bond producer.
But before we jump into that, let’s first define what a surety bond producer is.
A surety bond producer is a specialist who assists the principal in obtaining a bond. The said person will also be an underwriter. It is the duty of the surety bond producer to evaluate the surety bond applicant by assessing the applicant’s credentials. The surety bond producer will then present these to the surety company and give his opinion as to whether the applicant can be bonded or not.
Traits of a Professional Surety Bond Producer
Surety companies heavily relies on a surety bond producer’s assessment. A principal’s bonding need will depend on how good the surety bond producer is, and the barometer for that standard is summed up in these six traits:
- He or she must be highly knowledgeable
- He or she must be intelligent
- He or she must be a mentor
- He or she must be a facilitator
- He or she must be a teacher
- He or she must be a person of principle
We’ll expound on each of the traits given above.
Highly Knowledgeable Person
A surety bond producer who has little to no knowledge of the industry will never cater to the needs of the customer. So first and foremost, he or she has to be an expert in his field. The producer must have an extensive knowledge of everything that pertains to the principle of suretyship.
A surety bond producer must have an extensive knowledge of the the commercial surety product; the customer’s business or industry and the relevant surety requirements of that particular industry; credit principles; accounting methodologies; management practices and strategic planning that will make the business a success; the commercial surety market and market trends; the surety underwriting process and underwriting standards; the contract’s wording; and a bond form’s terms and conditions.
Intelligence is the implementation of knowledge. The surety bond producer must be able to put into practice all that he has learned. For instance, it is expected of him/her to understand the financial position of the client since he/she is proficient in finance and accounting methodologies.
And since the surety bond provider is highly knowledgeable about the terms and conditions of the bond, he/she must be able to assess the degree of risk that the surety will undertake as well as the would-be principal.
Being a mentor is a privilege and an honor. It means that you have gained enough merit to pass on to others. A surety bond producer is not just a mentor to a client, but to his/her peers, employees, and obligees.
- The surety bond producer must be able to provide the right kind of information tailored to the needs of the client.
- He/she must show his/her colleagues how the industry works and help them find their bearings.
- Must be able to give assistance to his/her employees when needed.
- Help the obligees understand the bond.
The surety bond producer, client, and surety should have a solid relationship. They must trust each other and must openly communicate what they feel should work best.
He/she will serve as both the advocate of the surety and the client. The surety bond producer must be able to translate what the surety says into the language that the client understands. The producer must also successfully fulfill the needs of the client.
The surety bond producer should not only be willing to share what he/she knows about bonds, but he/she should be able to convey the information in the simplest way possible.
Surety bond is already confusing as it is. Bombarding the client with technical terms will only enhance the confusion. And as Albert Einstein once said, “If you can’t explain it simply, you don’t understand it well enough”.
Person of Principle
Last, but definitely not the least, a surety bond producer must conduct his or her business affairs with honesty and integrity. This trait is not an option, but rather an absolute must.
There is no excuse for a person who lures in clients with the intent of deceiving them or not fulfilling the clients’ needs.
Just like anything else, suretyship succeeds on good, long-lasting relationships. And in order to have that, the surety bond producer should employ the very basic tenets of morality.
An excellent surety bond producer will strive to put into practice all these traits. When looking for one, you should scrutinize whether or not the surety bond producer embodies all that were mentioned or not.
Remember that the surety bond producer will play a big role in helping you reach your goals, so make sure that who you’re asking for help is the best.
Don’t know which bond to choose? Give us a call through this number: 800-333-7800. We’ll be more than happy to help you!