- “I don’t know what you want if you tell me.”
- “Nothing is ever enough for you.”
- “No, those pants don’t make you look fat.”
Sound familiar? Perhaps you have uttered these words? Were you referring to your romance life, or your bonding company (except for the pants comment.)
As it happens very much of the frustration we’ve in life arises from a failure to see things from another point of view. Husbands and wives know this. But the good news is that there’s a standard solution. Open communication and good listening skills would be the key. Can this be put on suretyship?
“What’s with all the Questions?!”
This is a great spot to start. Why do bonding companies ask so many questions? And just when you’re able to the end of round one, they think up more. It’s like they don’t ever are interested to finish!
Answer: To a diploma, it doesn’t ever end. That’s because the credit analysis a surety performs is dependant on info that constantly changes – and can do so without notice to the surety. They have to help keep a hand on the pulse to be confident when issuing bonds.
“Why do I’ve to give my own indemnity AND pay reasonably limited for the bonds?”
It appears as though the bonding company is taking no risk and they get paid for this!
Answer: Actually, personal indemnity does not guarantee a surety won’t have a net loss on a connection claim. Whenever a claim occurs, the business owners may already be depleted (trying unsuccessfully to resolve the problem.) Once the “stuff” hits the fan, the surety has to foot the bill and the indemnity might be worthless.
“Do these pants make me look fat?”
When contractors start to pursue an exorbitant work load the bonding company may put the brakes on. They don’t really want the business spread too thin with insufficient management and financial resources. Actually, dying from an excessive number of work (too fat) is more prevalent than the opposite.
The surety wants to be sure the client remains stable and able to perform their work – and thus avoid any chance of a connection claim.
Conclusion
Are bonding companies unfathomable, impossible to understand? No, it’s only that, unlike insurance companies, they are risk averse. They operate on an extremely thin margin and problems (claims) of any size can hurt them. Their very survival is dependent upon being prudent and conservative. This means ask questions and move ahead with caution.
