HOW TO GET SURETY BONDS?
Since most companies issue surety bonds through producers, also
called agents or brokers, your first step toward taking on bonded work is
to discuss your plans with a professional surety bond producer. You will find
that an agent who specializes in insurance and bonding for the construction
industry is likely to be the most qualified to assist you. The surety bond
producer will guide you through the bonding process and assist you in establishing
a business relationship with a surety company.
Even though most surety companies
are also large insurance companies, qualifying for bonds is more like obtaining
bank credit than purchasing insurance. Like your bank, a surety company wants
to know you well, before committing its assets. Most contractors find that
it is necessary to spend a lot of time and effort establishing their first
relationship with a surety company. Since the surety is guaranteeing your
company's performance, it needs to gather and carefully analyze much information
about you and your firm before it will agree to provide bonds.