Obtaining a surety bond is an effective way to lend its principal, meaning the individual who is required to be getting a bond, credibility in a business or court transaction. There area a wide variety of different kinds of bonds available, and similarly there are many bonding agents across the country offering their services in writing them. It’s important to find the right bond services in Arizona, as the company in question is being trusted to find their clients the right kind of bond. Below are a few tips for finding a reliable bonding agent or company.
Look For Specialized Services
Often insurance agencies write bonds on the side. This makes a certain degree of sense, as the two areas of practice are not unrelated. However, choosing to trust the writing of a bond with an insurance agency rather than someone specializing specifically in Bond Services in Arizona is a bad idea. Because bond writing is only a side business for them, insurance agents may not have adequate knowledge of how different bonds work, which can lead to higher prices and unnecessary claims costs for the principal.
Honesty and Integrity
The role of a bond writer is to sell clients their bonds, and collect payments. They typically do not get involved at all in the claim process, although some do offer a degree of protection for their clients against falsified claims. Check to ensure that the contract specifically mentions what the principal’s responsibilities toward paying claims are. A good agent will also offer advice as to how to how bonds work, how obligees can make claims, and how principals can avoid them.
In-House Capabilities
Many bonding agents do not have the ability to approve bonds directly. Finding a company that can process them in-house means quicker approval rates, and lower costs, since there is no need to pay yet another party to write the bond. Many prefer to work with local companies or individual agents, as they are more likely to represent the values of the communities they are a part of. Browse our website for more information about surety bonds, the differences between different types of bonds, and what services a bonding agent should be expected to provide.
