When purchasing a Site Improvement Bond, your agent matters. Site Improvement Bonds (also known as Sitework Bonds) are deeply complex and dependent on your unique situation. That’s why not just anyone can help you get your bond – it’s more than just filing some papers; it requires an intimate knowledge of you, your company and your industry.
So what do you need to know about an agent before buying your Site Improvement Bond?
Do you want an agent who’s never stepped onto a work-site? An agent who has no practical experience in contracting or building development? Probably not. Your agent needs to understand your problems to provide you the best solutions.
If an agent isn’t familiar with the development process, they will struggle to identify not only what you need, but also how they can help communicate your needs to the carriers.
For bonds as complex as Site Improvement Bonds, an experienced agent is crucial. They can often do more for you in less time and they’ll be able to communicate your needs much better than a novice. Since they will be more familiar with the requirements of your bond, they won’t need to waste time looking for the best solution for your problems. They should already know it. In short, inexperienced agents will need to fish around for solutions whereas an experienced agent knows where to go.
Ask yourself: can the carriers that the agent represents help you now and handle your growth in the future? This is essential for your long-term goals. They might cover your bond now, but can they continue to help you further down the road? If not, you might want to look somewhere that can sustain your growth.
The number of US Treasury top ten carriers that they represent also signifies how reputable an agent is. Ideally, you would like to see that they represent at least five of the top ten.
Similarly, make sure the carriers are reputable. Think twice if an agent offers you bonding from an unknown company.
Lastly, are they the best option for you? Do the carriers regularly bond companies like yours? Make sure it will be a good match with your needs.
When looking for a Site Improvement Bond Agent, it’s extremely important that you find someone with enough experience to handle such a complex bond. They will need to understand you, your industry and the complex nature of Site Improvement Bonds. Otherwise, you can end up losing valuable time while they fish around looking for answers and possible solutions.
Never forget to learn about the carriers that the agent represents. This all-to-often overlooked aspect has a profound impact in the quality of an agent for your company. Make sure they work with companies you can trust.
Once you find your experienced agent, he or she should be able to assist you not only with your Site Improvement Bond, but for all your bond needs as your company continues to grow.
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