Author: Suretypedia Team 4-7-2020 As a financial guarantee to businesses with a high rate of failure, Sales & Use Tax Bonds have long been considered riskier than many other small commercial surety requirements even in normal and good economic times. The past few weeks have been far from normal, a state not likely to return …
Sales Tax Bonds: “Tide’s Out, Time to Discover Who’s Swimming Naked” Read More »
Author: Suretypedia Team 4-7-2020 Social distancing is creating unprecedented upheaval in the economy that we believe could lead to substantial higher loss ratios for a number of types of surety bonds. Stay-at-Home and similar orders prevent many businesses from continuing operations in hopes of slowing the spread of Coronavirus (COVID-19), making this an uncertain time …
Utility Deposit Bonds: As Restaurants Go Dark, Claims Will Light Up Read More »
Author: Suretypedia Team 3-26-2020 The disruption from the COVID-19 crisis is, directly and indirectly, placing significant pressure on contractors, increasing both contractual and solvency risk, both of which present major implications for the Surety industry. As detailed in our recent article “Stay-at-Home”: List of Essential Services Matters Greatly to the Surety Industry, construction is largely …
Contractor Bonds: Executive Guide to the Coming Elevated Claims Environment Read More »
Author: Carolyne Buchanan 3-17-2020 Many regulations exist in the construction industry, most designed to protect contractors, businesses, and the vendors and suppliers used to complete projects. One long-standing regulation is the Miller Act – federal law enacted in 1935 that still holds weight today. Under the Miller Act, certain federal construction projects require specific bonds …
The Miller Act: Understanding Requirements and Recoverable Costs Read More »
Author: Suretypedia Team 6-23-2020 Many insurance executives think of surety bonds as relatively simple risks, often one-page contracts with no variability amongst carriers, but surety veterans understand that nuance of adverse bond form language that is often overlooked. One such underappreciated risk is Stacking Liability. As we explained in our deep dive into different bond …
What is Stacking Liability and Why Does it Matter? Read More »
Author: Suretypedia Team 12-3-2019 Industry experts can now publish insightful content and update the Suretypedia bond database Suretypedia, the free encyclopedia for surety bonds, launches a major upgrade to https://www.suretypedia.com/, which provides a brand new interface and allows surety experts to contribute articles, update information and submit forms on its vast encyclopedia of surety bonds. …
Author: Suretypedia Team 11-19-2019 The surety bond industry is one of the most opaque, misunderstood niche lines in the insurance industry with its unique tri-party structure and arcane terminology. No bond term is more confusing to the non-surety expert than “Obligee”, the driving force behind the need for a surety bond in all cases. Even …
Author: Suretypedia Team 11-19-2019 Most surety industry terminology isn’t widely used or well understood outside of the circle of industry professionals that specialize in this niche insurance line. We previously discussed the very obscure concept of an “Obligee” (check it out here). Another aspect to a surety arrangement that seems to raise a lot of …
Author: Suretypedia Team 11-19-2019 Surety bonds are among the oldest contracts in the world; however, they are often misunderstood in the insurance marketplace. The agreement underlying a surety relationship is known as a “Bond Form.” This article seeks to provide the ins and outs of the parties, structure and language privy to this often confusing …
Author: Suretypedia Team 11-9-2019 Many people find the attributes and outcomes of surety bond claims confusing because they are very different from traditional insurance policy claims. The first and most fundamental difference is that unlike an insurance policy, which protects the individual or business who purchased the policy, the “Principal” who purchases a surety bond …