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This submit is a part of a collection sponsored by Previous Republic Surety.

“We’ve focused tight turnaround instances from submission to approval utilizing Previous Republic Surety’s (ORS) FastBond course of — the quicker, the higher,” says Todd Taylor, CPCU, AFSB.

As an ORS Bond Supervisor, Taylor has seen the favorable affect 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 primarily based on credit score solely,” he says. “And since there’s no want for added monetary data and no CPA required, that saves great time and problem. 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 may be thought-about with further underwriting data.”

What if a shopper does require extra? Taylor explains that they’ll nonetheless use FastBond to safe as much as $2 million single or combination by including present company and private monetary statements to their utility — nonetheless no CPA involvement crucial.

Taylor notes a current uptick in FastBond exercise as properly. “We’ve got a historical past of writing accounts utilizing frequent 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 could not qualify for our contract aspect, they signify an actual mainstay of the development trade.”

Conserving 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 circumstances. “As in different sectors, building prices have risen throughout the board, making the identical danger are available at a a lot increased 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 primarily based on credit score. The FastBond utility is so simple as earlier than, however increased limits maintain our brokers aggressive, they usually can qualify bigger accounts with much less want for underwriting. Better of all, even at these increased limits, the fast turnaround remains to be potential, which may 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 strain may be intense,” he says. “Our fast turnaround alleviates a few of this stress.”

Whereas many brokers are already comfy with the FastBond utility course of, the ORS staff is able to bounce in and supply steerage for any brokers who’re simply getting began in bonds or who may need assistance with the primary few purposes. “We are able to velocity up the training curve and double-check their work till they’re comfy doing an utility 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 present monetary statements for increased quantities, most brokers change into adept fairly shortly.” He provides that Previous Republic Surety may also present a bond-ability or pre-qualification letter if that’s a requirement earlier than any formal bonding. “We’re all the time pleased to confirm {that a} subcontractor can qualify for a bond if that’s all they want in an effort to submit a bid,” he says.

FastBond can be a useful stepping-stone for brokers who wish to assist their shoppers transition into bigger initiatives. “Few shoppers are in a position to bounce to a normal 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 maintain extra of their rising accounts till they’re able to graduate to our contract aspect.”

FastBond benefits

Whereas Taylor considers the upper limits, fast turnaround and straightforward utility course of amongst FastBond’s main advantages, he additionally highlights their bond availability in all 50 states and their consideration of all building trades. “This can be a resolution that’s supreme for shorter length initiatives in that candy spot of $1 million to $2 million, however we’ve got loads of flexibility to debate variations,” he says. “Even when a job is projected to be barely increased, we wish brokers to name us; we’re all the time keen to debate the underwriting specifics and dig into the small print of a undertaking to succeed in an approval. Previous Republic Surety has all the time primarily based our bond approvals on extra than simply the spreadsheet numbers.”

Taylor provides that the corporate will proceed to judge and alter FastBond as wanted. One current enchancment is the addition of safe DocuSign digital signatures for purposes. Different workflow options are in fixed assessment.

“Providing a extra streamlined bonding course of for smaller exposures is likely one of the finest methods to increase alternatives for our brokers,” he says. “And Previous Republic has actually supported our efforts to enhance small account servicing. In spite of everything, extra bonds imply extra progress, and simply because a bond could also be thought-about small by trade requirements or a shopper has an rare want, they’re nonetheless a necessity. We’re right here to make getting them as simple as potential for our brokers.”

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