How Do You Get A Surety Bond For The First Time?
Whether you are growing contractor and want to bid on a job that requires bonding or you are now required to having bonding due to bill 142 and the changes to the Construction Lien Act, many contractors are asking how do you get a surety bond for the first time? The answer to how do you get a surety bond for the first time is not a quick or easy one and nor if the process, but the experienced construction insurance brokers at ALIGNED Insurance are her to help answer the question how do you get a surety bond for the first time and will make the process as smooth, easy and quick as possible.
What Information Do I Need To Get A Surety Bond For The First Time?
With the help and guidance of the contruction insurance brokers at the business insurance brokerage ALIGNED Insurance contractors that do not currently have a bonding facility, need to prepare and provide the following information for our evaluation by potential surety companies that that the brokerage recommends:
- Most recent year-end financial statements for both the operating firm and all affiliates and related companies. Should the year-end financial statements be in excess of six months old, interim financial statements will also be required.
- Aged listings of receivables and payables for interim financial statements and the latest year-end statements
- Work on hand report to coincide with financial statements (template available from an ALIGNED construction insurance broker)
- Bank reference letter (template available from an ALIGNED construction insurance broker)
- Personal net worth statement completed by the principals of the firm (template available from an ALIGNED construction insurance broker)
- A completed contractor’s questionnaire (template available from an ALIGNED construction insurance broker)
The above list of requirements can seem a bit daunting, but insurers are putting their captial at risk based on their evaluation of your organizations character, capacity & capital so it is important to prepare and present your company in the best light possible and with as much information as possible, but generally it’s beneficial to start with information on #1 & #2 to confirm whether your organization meets the financial requirements to get a surety bond for the first time before proceeding with the collection of the remaining information.
To Find Out More About How Do You Get A Surety Bond For The First Time? Or To Get A Surety Bond For The First Time Connect With One Of Our Canadian Construction Insurance Brokers Today at 1-866-287-0448
|ALIGNED Across Canada 100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves nearly 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.|