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How do I obtain a Surety Bond?
Having the right card is everything!
The first thing you need is a qualified agent and you’ve come to the right place!
6 Questions to Ask Your Bond Agent
- How long have you been in the industry?
The longer they’ve been round, the more experience they have, the more people they know and the validity they have in the marketplace. At Loxme Group, we are proud to say that we have over 25 years of industry experience.
- What Surety bond companies does your agent represent?
Your agent is only as good as the markets they represent. A good agent will have the resources of multiple sureties to determine the best possible fit and program for you.
At Loxme Group, we represent and hold powers for nearly every major surety company — ensuring you will be represented by the best possible surety for your needs.
- How well do they know YOUR business?
How experienced are they as an organization to understand your type of business? Our construction insurance and surety bond teams handle a variety of contractors (and ONLY contractors) and represent some of the largest and most successful in the Tri-State area — from general contractors, electrical, mechanical, bridge painters, bus companies, waste haulers, exterior and interior renovators to environmental risk. Chances are, Loxme Group knows YOUR business.
- Who will you be dealing with for your day-to-day needs (i.e. bond processing, information request) and what, if any, systems do they utilize?
At Loxme, we have a state-of-the-art bond tracking system. Our Customer Service Response team has extensive bond experience. This staff is overseen by a Bond manager and your daily business is expertly and routinely managed. This means you get your bond faster and more efficiently than most other places.
- Does your agent have a working relationship with other construction professionals? Are they respected by these professionals?
Loxme Group has a strong basis of professional relationships including, CPA’s, Bankers, Legal counsel, potential J/V partners, subcontractors and such. We routinely refer and introduce our clients to the professionals they require — a list of references is available on request.
- Is your bond agent helping YOU become more successful?
An agent should be a business partner, an extension of your organization that enhances your company. They should be a trusted partner and look forward to the future of YOUR success. In order to do that, they should not just be someone you call for a bond – they assist you and are a part of your daily business plan.
At Loxme Group, we offer a variety of services that our clients can utilize as part of our overall customer service. We want you to be a valued client for years to come. We invest in YOUR success.
Here are some of the services we offer as part of your team:
- Review of Financials – this includes analysis of financial statements (both internally and externally produced), evaluation of the company’s financial organization, practices, controls and procedures, systems, etc.
- Annual and Semi-Annual Information Reminders – Our staff is so efficient we don’t wait for a problem to arise or a bond to be requested to obtain information to keep your account current. We send out reminders twice a year (with follow-up reminders in between) so that we can have your account updated and ready for when you need us.
- Contract and Bond Form Review – we can also assist in negotiations and drafting of acceptable terms with obligees and principals.
- Helpful Resources – Our interactive and updated website shares articles on relevant industry topics to help keep you up to date on what’s happening.
- Banking Support – We help to arrange and/or support your banking relationship.
- Local Market Presence – one of the most important services we can provide our customers is our intimate knowledge of the local construction marketplace.
Let’s Get Started: Call or email us now to apply:
email@example.com (631) 651-9330You will need to complete an application and submit several documents. Below is what we call the bond starter kit. Click the links below to find the needed information and forms:
FORMS AND APPLICATIONS: Complete these forms to submit to us.
Surety Bond Submission Check List Contractor’s Questionnaire Bank Credit Reference Form Personal Financial Statement Work In Progress (WIP) Bond Request Form Detailed Job Cost Breakdown CNA Misc Bond Application Bond Starter Kit – All Forms
**Once this information is obtained, we will evaluate it and determine the right surety market for you. We will then “submit” your account to a Surety company with a recommendation for support. The underwriter then evaluates your company and determines the appropriate amount of surety credit to extend. Very important: This is an ON-GOING process. As you grow, your surety program will grow with you. Consistent updates and evaluations will be required. It’s important that your bonding agent understands your needs so they can obtain the right surety program for your company’s growth.
What surety program do I qualify for? How is my information and company evaluated?
No two companies are alike and having an agent that understands the difference is so important. Below you can find a link to the three C’s of Surety. This is a basis of the criteria for which an account is underwritten. However, there can be extenuating circumstances that make any one of the three C’s weigh more heavily than the other. For example: the owner may have been a PM with a much larger company prior to the opening of his/her own shop. In this case, while financials may be light- his/her prior job experience, relationships and knowledge may weigh heavier in the overall picture.
Click the link below for further information:
The 3 C’s of Surety Credit
What surety bond program do you qualify for?
Capital: The financial strength of your organization.
Loxme Group will work closely with your CPA and the surety underwriter to be certain that all the critical components of your working capital and net worth are included in their analysis. This provides each client with the peace of mind that the Surety is providing the maximum capacity to your program based on your maximized financial strength. For a review of your financial strength and bond program, talk with the Loxme Group Construction & Bond team.
Capacity: The physical ability of your organization.
The underwriter will evaluate your level of expertise in a certain field, the scope of your management, previous job completion and the quality of your plant and/or equipment. Every project and every contractor is unique. Providing a larger Surety program may make sense when the situation presents the right elements. That’s when you need an experienced agent like Loxme Group. We don’t wait for the underwriters, we show them how you qualify. The Loxme Group Construction & Surety Bond team will package your case to bring forth all the pertinent issues to support maximum bonding program for you. This is what you need to get the job done. To evaluate what size project/program you qualify for, contact a Loxme Group surety bond expert.
Character: The reputation of the owners and the people they employ.
The third C, and what most may argue is the most important of the three, is character. Yes, all contractors are characters – but in this context we are referring to the character and reputation of the owners and the people they employ. A contractor can have all the financial strength and experience in the world but if they “don’t play well with others” and have a poor reputation, it will affect their bond program. A contractor that has established good business practices and has employees with strong resumes can often increase their bond programs based largely in part on “WHO” they are. Even if you’re a contractor who has overcome difficult times and getting back on your feet – your ability to overcome these obstacles and learn from your mistakes can actually add to your good character.
While the 3 C’s are a good basis for evaluation of any contractor, there are several other factors that need to be considered. That’s where Loxme Group comes in. A constructive team with experience and expertise evaluating and guiding your company can make the biggest difference of all. A strong insurance advisor, one that is knowledgeable, that holds a good reputation and has a strong team can guide you in the direction needed to increase your bond program and insure you have the best possible insurance coverage (for the best price) for your company. The support, industry knowledge and experience we can offer to you will add to your overall capacity and strength.
Get an advantage on your competition. Get the Loxme Group advantage.