As a business owner in today’s society, you should already understand why you needed to get bonded as you face innumerable uncertainties on a daily basis. At any point in time, something could go awry and your business could be put in a very compromising situation. This is why it is absolutely vital to learn about getting surety bond from a Canadian surety company. Although the surety agency is capable of providing you with the bonds needed to protect your business, they’ll also work on your behalf in other ways.
If a claim is filed against your company, the surety will become your advocate and work to defend you from unnecessary losses. Below, you’ll learn more about the importance of your surety claims advocate.
Avoiding Sizeable Bonding Companies
When taking the time to explore the potential bonding companies, you will run across
businesses of all different sizes. Initially, it may seem like a good idea to enter into business with a massive bonding company, which has 500 or more employees. Surely, a company of this size will be able to handle all claims in a reasonable manner. The truth of the matter is that oversized bonding companies are good in some ways, but they’re also bad in many others.
Massive corporations tend to work simultaneously with an enormous number of clients. To these groups, you are just another minute paycheque and these companies will most likely consider you to be expendable. If you work with one of these groups, you will likely not be able to work 1-on-1 with your surety agent, so these companies are best avoided.
Finding A Voice
By working with oversized bonding companies, you’re truly lowering your standards and signing yourself up as another number on the company’s lengthy list of clients. These massive companies are less likely to care about the outcome of your claim and will only desire to reach a conclusion, as quickly as possible. When attempting to choose a surety agent, you need to find a helpful voice, which will be willing to speak on your behalf, during the claims process. Your surety agent should be more than willing to work with you hand in hand throughout the entirety of the claims process.
If your hit with an illegitimate claim, this professional should be willing to uncover the truth, so you are not forced to pay any unnecessary fees.
Finding A Reliable Claims Advocate
Many business owners make the mistake of rushing the bonding process. Although this will give them the ability to obtain the bond much quicker, it will also be much more likely to result in future problems and headaches. Remember that you’ll be required to work with the selected surety agent, until the duration of the bond has concluded. Therefore, you should do your best to acquire the help of an agent, who truly cares about you, your business and its future.
Attempting to differentiate from money hungry agents and those that will truly care can be very difficult and nearly impossible. Below, you will find a list of tips to help ensure that you do not fall into a trap.
Willing To Educate You
During your initial contact with the agent, you may not have a full understanding of surety bonds. Most consumers mistakenly believe that surety is nothing more than insurance, but this couldn’t be further from the truth. When first speaking with the agent, he or she should be happy to explain surety bonds and the claims process. If they’re willing to take the time to educate you, they may very well care about the future of your business.
Surety Bond Benefits
Most people are not entirely familiar with surety bonds and their benefits. When chatting with the agent, you should ask him or her about the benefits of surety bonds. If they’re unable to provide you with a coherent answer, you’re likely speaking to someone, who doesn’t fully understand surety.
Understanding The Indemnity Agreement
Before you’ll be able to obtain your bond or bonds, you’ll most likely be required to sign an indemnity agreement. Before you sign on the dotted line, your agent should breakdown the agreement, its purpose and why it is a necessity.
Strategy For Avoiding Claims
It is truly in your best interest to avoid claims in the first place. From a business perspective, this may seem easier said than done. However, your agent should be able to provide you with a reliable strategy to help cut your potential claims to a minimum. If the agent doesn’t have any interest in helping you limit your claims, you can guarantee they’re only interested in making money.
Grasping The Bond’s Guarantee
When taking the time to explore the innumerable bonds, which are available in Canada, you will find that they’re all diverse and unique in one way or another. Each bond will come with a bond form, which will clearly define what is guaranteed. The problem is the fact that this information is generally provided in complex, legal language, which won’t make a bit of sense to most business owners and consumers.
In all likelihood, your agent won’t be entirely familiar with each and every bond available in Canada. The sheer number of bonds makes this nearly impossible. However, the agent should be able to read and translate the bond form, without much difficulty. If he or she is willing to take the time to help you understand precisely what is covered by the bond, you can rest assured knowing that the agent truly cares about you and your business.
It Is Your Duty
At the end of the day, a good surety agent and claims advocate isn’t going to find you. Instead, this will be your duty. In order to ensure that your company will be fully protected and will stand a fighting chance against bond claims, it is pertinent to explore the information above and work diligently to find a Canadian surety agent, who truly cares and is more interested in helping than making money. If you do this, your company will flourish and you’ll be able to maintain your peace of mind knowing illegitimate claims will be squashed.
Other useful posts
- Guide to finding the perfect bonding company
- Breaking down performance and payment bonds
- A comprehensive guide on how to Become bonded contractor
- Other types of bonds
- Performance bond insurance: Welcome to the big leagues
- What is a bond?
- What do construction bonds cover?
- Surety bond claims – How do surety claims work?
- What does it mean to be bonded?
- Qualifying for a surety bond as a contractor
- Why are construction bonds required?
- How to apply for a construction bond – A complete contractor’s guide
- How much do construction bonds cost?