This publish is a part of a collection sponsored by Previous Republic Surety.
“We’ve focused tight turnaround occasions from submission to approval utilizing Previous Republic Surety’s (ORS) FastBond course of — the sooner, the higher,” says Todd Taylor, CPCU, AFSB.
As an ORS Bond Supervisor, Taylor has seen the favorable impression of FastBond, which has been out there for greater than 10 years. “We’ve managed to simplifythe bonding course of for brokers by providing limits as much as $1 million based mostly on credit score solely,” he says. “And since there’s no want for added monetary info and no CPA required, that saves super time and trouble. Inside the Quick Bond program, Previous Republic Surety will contemplate non-residential completion bonds as much as $250,000 in bond penalty on credit-based underwriting. Larger limits might be thought of with further underwriting info.”
What if a consumer does require extra? Taylor explains that they’ll nonetheless use FastBond to safe as much as $2 million single or mixture by including present company and private monetary statements to their software — nonetheless no CPA involvement essential.
Taylor notes a current uptick in FastBond exercise as effectively. “We’ve got a historical past of writing accounts utilizing widespread sense underwriting, and Previous Republic Surety is pleased with our partnership with brokers who write accounts that could be smaller or just have few or very rare bond wants. These are the sorts of accounts which might be an actual plus for thus many brokers. Though they might not qualify for our contract facet, they characterize an actual mainstay of the development trade.”
Retaining brokers aggressive
To remain forward of the curve and preserve a management place in these smaller account markets, Previous Republic Surety requests agent suggestions and screens trade situations. “As in different sectors, building prices have risen throughout the board, making the identical danger are available at a a lot greater worth than it did only a few years in the past,” Taylor says. “We’ve continued to regulate our limits as wanted to maintain tempo with these modifications, which is why we not too long ago elevated limits from $750,000 to $1 million based mostly on credit score. The FastBond software is so simple as earlier than, however greater limits hold our brokers aggressive, and so they can qualify bigger accounts with much less want for underwriting. Better of all, even at these greater limits, the short turnaround continues to be potential, which might be essential for profitable a bid.”
As Taylor notes, contractors usually postpone tackling bond points till the top of a bid course of, and it’s commonplace for them to attend in an agent’s workplace for bond approvals. “Bid time stress might be intense,” he says. “Our fast turnaround alleviates a few of this stress.”
Whereas many brokers are already comfy with the FastBond software course of, the ORS workforce is able to leap in and supply steering for any brokers who’re simply getting began in bonds or who would possibly need assistance with the primary few functions. “We will velocity up the educational curve and double-check their work till they’re comfy doing an software on their very own,” Taylor says, “However as a result of the shape is so easy and the bond is primarily credit-based or solely requires current monetary statements for greater quantities, most brokers change into adept fairly rapidly.” He provides that Previous Republic Surety may present a bond-ability or pre-qualification letter if that’s a requirement earlier than any formal bonding. “We’re at all times completely happy to confirm {that a} subcontractor can qualify for a bond if that’s all they want to be able to submit a bid,” he says.
FastBond will also be a useful stepping-stone for brokers who wish to assist their purchasers transition into bigger tasks. “Few purchasers are in a position to leap to a regular bond program in a single day, and a few simply don’t wish to make the extra required investments, like CPA involvement,” Taylor says. “With FastBond, the upper limits assist brokers hold extra of their rising accounts till they’re able to graduate to our contract facet.”
FastBond benefits
Whereas Taylor considers the upper limits, fast turnaround and straightforward software course of amongst FastBond’s main advantages, he additionally highlights their bond availability in all 50 states and their consideration of all building trades. “It is a answer that’s perfect for shorter length tasks in that candy spot of $1 million to $2 million, however we now have loads of flexibility to debate variations,” he says. “Even when a job is projected to be barely greater, we wish brokers to name us; we’re at all times prepared to debate the underwriting specifics and dig into the small print of a mission to succeed in an approval. Previous Republic Surety has at all times based mostly our bond approvals on extra than simply the spreadsheet numbers.”
Taylor provides that the corporate will proceed to guage and alter FastBond as wanted. One current enchancment is the addition of safe DocuSign digital signatures for functions. Different workflow options are in fixed assessment.
“Providing a extra streamlined bonding course of for smaller exposures is without doubt one of the greatest methods to broaden alternatives for our brokers,” he says. “And Previous Republic has actually supported our efforts to enhance small account servicing. In any case, extra bonds imply extra development, and simply because a bond could also be thought of small by trade requirements or a consumer has an rare want, they’re nonetheless a necessity. We’re right here to make getting them as straightforward as potential for our brokers.”
This weblog was initially printed on the Previous Republic Surety web site. It’s reproduced right here with permission.
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