How to Find Surety Bond Producers in Your State

Published by admin | Filed under Bonds

Surety bonds are a critical component of your contracting business.  Often the difference between business success and failure, a surety bond gives consumers a measure of confidence when undergoing a home renovation.  These bonds are executed to ensure that the contractor performs his duties and, in the event that he defaults on the contract, the surety bond will certain that the job is finished one way or the other.  The surety company will either provide financial compensation for an incomplete or unsatisfactory job or will appoint another company to complete the job.  Needless to say, the thought that their job will be complete one way or another is an extremely reassuring one to consumers who are increasingly knowledgeable about bonding and actively seek contractors who have surety bonds.

So you know you need a surety bond, but how do you actually get one?  Before you even submit to a credit check or sign the actual bond with the company of your choice, you must find a company who provides surety bonds.  But where do you look in your state for producers of these bonds?  Perhaps the best place to start is your state’s Small Business Administration.  The SBA serves many important functions and is exceptionally helpful when it comes to surety bonds.  Among other responsibilities, the organization guarantees bonds for new and smaller companies in order to give them a start when bond companies might be wary about insuring them.   Often, the Small Business Administration is the singular and most helpful resource you’ll find in your early days, weeks, and months as a contractor.

Also worth checking is the National Association of Surety Bond Producers.  The NASBP is one of the larger bond producer associations in the country and has an extensive website (www.nasbp.org)  which has a variety of resources.  Most importantly, it has a database by state so that you can see surety bond producers in your area.

With a little research, finding the best company to provide you with your surety bond is relatively easy and quick.  Remember that whomever you choose, he or she should have a good working knowledge of your industry and have experience writing surety bonds.  Your surety bond producer should be willing and excited to work with you and be able to provide you with the product you desire.  For more information on surety bonds and where to find local producers, visit www.nasbp.org or www.sba.gov