Bonding for Smaller Construction Companies

[Liz Older]

Hi everyone, I need your input.

I have had several clients tell me that they can't get increased bonding from their existing large carrier because, " ...larger construction companies are leveraging their position with the underwriters. The large companies threaten to take their business elsewhere, if the insurance company continues to increase the bonding limits of the smaller companies."

Have you heard of anything like this in your areas? Please let me know. Thanks.

[Bill Hitte]

Haven't heard of that specifically. However, if the business is trying to get a larger limit, check with your state economic development agency as they often have bonding programs for certain businesses (especially those doing gov't work). I'm also sure that if a state gov't agency hears what has been stated in your comment - and that's the reason the business is contacting the state for assistance, the regulatory folks would be more than happy to inquire.

[Zachary McNeal]

Check with your state economic development department. Many offer bonding assistance for smaller companies.

[Cindy Fallsen]

A Furnace filter company in Ohio was having the same problem. I would echo what the others have said. Be sure to check with the regulatory folks and I am sure that they will be happy to help.