In a mature conservative industry like SURETY BONDS it is difficult to find new and exciting products. Even though I believe this statement, I am going to continue down the road with the original premise of this blog. What’s hot in the surety world for 2012? I do think there is excitement and interest in one particular segment of our business-Commercial Contract Bonds. And you ask “What are you talking about?” These bonds guarantee performance under a contract for a service, or supply/ installation of a product. Typical examples for this type of bond are a contract for a security guard service, a contract to supply school buses, or a facilities management contract. An emerging use for this commercial contract bond is to support the trend of cities, states and municipalities contracting services to the private sector such as school bus transportation or the maintenance of highways in an effort to become more efficient and save money.
Surety bonds, a proven method of risk transfer are frequently used to mitigate the downside risk of loss. We have seen increased requests for a performance bond being incorporated into RFP’s because contractors are requiring bonds from large suppliers and the public sector is protecting their taxpayers from contract default when it outsources a service.
Is your business in need a bond for the first time? If so, you are probably asking “What do I do now?” Early, Cassidy and Schilling, Inc. has the solution for you. Just contact the bond department today.
Written by: Lynne Cook