When working with a bonding agent, it’s beneficial to your business to make sure they’re the right fit for you. You will want to establish a GOOD bonding relationship from the beginning, rather than finding out later than you’re at a standstill and can no longer get the bonds your company needs.
By asking these important questions, you should be able to determine if an agent is the right one for you.
How much experience do they have handling bonds?
It’s important to know if they are a designated bonding agent that handles bond on a daily basis or one that may handle a few bonds per month. Experience can really make a difference with the amount of bonding capacity that is provided to you, the service you receive and the bonding rate you are provided.
Do they know the industry?
You need an agent that knows the industry very well and knows which markets may be a better fit for your company. If your agent places you with the wrong market, it could potentially cause issues down the road with obtaining the bonds you need.
Do they work solely on commission?
Does their paycheck rely on this transaction? It’s important to know this because an agent who works solely on commission may be quicker to sell you something even if it’s not the best option for your company. There is a difference between a salaried bond agent and one who works solely on commission.
Can they guide you through the process to ensure that a surety market sees the very best your company has to offer?
You need an agent that know the right questions to ask and feels confident that they can relay that information to the surety market. It will not benefit your company working with the agent that is the middle man or a paper pusher. You deserve a bond agent who is an adviser and an advocate for your company.
Knowing the answers to the above questions can help you choose the right agent or even determine that your current agent may not be the best fit for you. At the end of the day, if you can trust your bonding agent, that’s one less headache for you.