Suretypedia Team

Author: Suretypedia Team 7-14-2020 Despite major upheaval to the global economy caused by the policy response to the 2019 coronavirus, surety underwriting and rates have remained surprisingly stable. While the surety underwriting cycle typically lags the economic cycle, one major reason for the lack of tightening in recent months is the relative resilience of credit …

COVID Payment Deferrals: Should Sureties Ignore Credit Scores? Read More »

Author: Suretypedia Team 5-29-2020 Fidelity bonds provide businesses with coverage against employee theft. With roughly 41 million Americans out of work and many businesses forced to be closed to comply with Stay-at-Home orders, demand for fidelity bonds has been drastically reduced, potentially reducing premium for surety carriers and commissions for their agents. Worse still, with …

Fidelity Bonds: COVID Hits Demand, not Claims Read More »

Author: Suretypedia Team 4-28-2020 As governments across the U.S. enacted proactive measures to safeguard public health in response to the emerging threat of COVID-19, the fitness industry was among the first to be severely impacted. While some jurisdictions are beginning to loosen social distancing requirements, we expect health clubs, spas, gyms, or self-defense studios will …

Health Club Bonds: “Recession-Resistant”, not COVID-Immune Read More »

Author: Suretypedia Team 4-16-2020 As a result of persistent social distancing measures, many small businesses aren’t maintaining revenue necessary to stay afloat and travel agents are not expected to be spared. The Trump Administration’s State of Emergency declaration halting all non-essential travel, state and local Stay-at-Home orders and general fear surrounding the pandemic have decimated …

Travel Agent Bonds: Hundreds of little Thomas Cook’s? Read More »

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: 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. …

Suretypedia Converts to a Crowdsourced Platform Read More »

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 …

Suretypedia’s Guide to Obligees Read More »