Cost is usually the first concern when a consumer buys anything. This is an important factor but not necessarily the first consideration when purchasing everything, specifically surety bonds. One must look at other features such as the financial strength of the surety, the reputation of the bond agency, any additional available surety credit, requirements for renewal and others requirements specifically tailored to your needs.

Bond Agency: Look for good customer service in this area. An agency lacking in this could lead to bigger problems. Many customers making the switch have left because their previous agency had inadequate customer service. One client said they waited weeks to receive their bond even after making payment. We find this kind service to be unacceptable and pride ourselves as one of the quickest in the industry. While our competition may take more than a week to quote, we provide an instant on-line approval for many classes of business; most other quotes take one to three business days. In a world where often you get what you pay for, be cautious when it comes to service. Bryant Surety Bonds, Inc. is not always cheapest but we are very competitive and our service is first rate. Not only that, but our reputation has allowed us to receive several exclusive markets from sureties.  

Financial Strength of Sureties: AM Best analyzes bonding companies’ financial strength and gives ratings by letter grade. This is a good source when evaluating bonding companies. Also, different surety bonds may have letter grade ratings. A contract bond may require a surety with a certain letter grade. Otherwise the bond, as good as it seems, is useless if it does not meet the contract specifications. Another good source is Federal Treasury List for contract bonds and commercial bonds. This list, also known as the T-list, has a directory of all bonding companies meeting the requirements of the federal government. It is important that you check with the obligee for bond acceptance on any bond prior to sending payment. Once the bond is issued, it is fully earned the first year in most cases. That means if you cancel after issuance, there is no refund.  Bryant Surety Bonds, Inc. represents only A-Rates, T-listed Sureties.

Requirements for Renewal: When you “shop” for surety bonds, this feature will vary the most with different bond agencies. While most will ask for account updates, some will require new business and personal financial statements, others will need information on business financials only, credit reports and the like. Not only is it annoying to update, this could pose a potential problem for some principals. If the bonding company’s requirements are not met, the surety may not renew the bond. Even if you have been with the agency for years, you could jeopardize the bond if you do not meet the current guidelines from the bonding company.

Some agencies automatically renew sureties without any updates at all. This is a clear advantage as there is no fear of being dropped after a particularly bad year or, having the surety complaining of a net loss at the end of the year from a large owner draw.

Potential for Additional Bonds: Depending on how hungry a bonding company is for your business, the underwriting guidelines could vastly differ. Some conservative carriers will not write a bond for principals below a 700 credit rating while others will approve with a 615 credit score and still provide a competitive rate. Bryant Surety Bonds, Inc. can offer standard rates for some business classes due to our volume, regardless of credit ratings. The strict underwriting of conservative bonding companies allows for low claim rates thus the premiums are lower.  If you are looking to expand your company and need additional bonding, you need to be aware of the potential for additional bonds available and the bonding companies who will provide them for you.

In summary, cost is a factor along with a good knowledge and decision making when purchasing a surety bond. The decision to purchase a surety bond on cost alone could be dangerous when considering the poor service/response time from your agent, renewals are not granted, or there are no provisions for additional bonding.