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...ldn't be provided, and the client's bid was rejected. The manufacturer sued th...hority limitations when the requested bonds are in excess of its bonding limit...

... ), Speed is the name of the game in your business, and many contractors simply don't have time to learn a great deal about their insurance programs. Unless your situation is different from other contractors, you have found yourself asking these questions: 1) Am I covered against the many things that can go wrong? 2) Is there any way I can figure lower insurance overhead into my bids? 3) Can SOMEBODY explain bonds to my satisfaction? At (Your Agency Name), you'll get straight, honest answers to these and all your other questions. We understand construction, which enables us to design a program best suited to your specific business activities (and by the way, we do not always recommend insurance) . One final question: If your main goal is lower ... and more profits- how much is your insurance contributing? Give us a call- we can help. Sincerely, Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join? Need insurance for you, your business or your family? Get quality appointments - Save yourself a whole lot of time & money when you use our directory of carriers, wholesalers and service providers. Negotiate lucrative contracts with carriers and wholesalers. Net result. More revenue for your agency! Clients & Prospects will research you, your co-workers and your agency here. The most comprehensive online insurance industry reference library for - Personal Lines Professionals Commercial Lines Professionals Life/Health & Benefits Professionals Online newsletters and content that you can use for your clients and social media efforts ...

...iness? When do you begin your bidding process? When do you prefer ...

...re lower insurance overhead into my bids? 3) Can SOMEBODY explain bonds to my satisfaction? At (Your Agenc...

... bonds is a time-consuming task that requires a working knowledge of the construction industry and financial analysis. Simply learning the intricacies of surety bonds took two or three years, while picking up construction industry terminology is an ongoing process, Ward says. You have to know what a CMU (concrete-masonry unit) is, ' for example, says Ward. The agency also spends a great deal of time issuing bid bonds for clients who are bidding on jobs-as many as 20 bid bonds for every successful bid. The agency receives no commission unless the builder wins the bid. A final drawback: the agency is at the mercy of the same market forces that create dramatic swings in the construction industry. If contractors aren't working, then the agency isn't making any money on that line of business. Still, ... a construction firm office up the street walked in and asked if we had a contractor surety questionnaire, ' recalls John Ward, one of two principals in the family-owned business. The contractor had messed up the form provided by an out-of-town agent and needed a clean version to fill out. I said I could provide the same service for him locally, ' says Ward. We had never done surety bonds before and I thought it would be like writing a fire policy. It was a real learning experience. Today, due to a lot of hard work and a common sense approach, construction surety bonds-guarantees that contractors will complete construction projects-account for about 15 percent of the agency's $2.25 million in annual premiums. Three-quarters of the agency's business is in commercial lines, and about half of that is with ...

...spends a great deal of time issuing bid bonds for clients who are bidding on jobs-as many as 20 bid bonds for every successful bid. The agency receives no commission unless the builder wins the bid. A final drawback: the agency is a...nging legislation. 'The notary public bonds and used-car dealer bonds are required by the state,' he exp...

... of loss prevention, risk managers should have general knowledge backed by their own loss information. This should enable them to determine the best method of obtaining what loss-prevention counsel is needed. Risk Function Administration. Miscellaneous duties include supervising contractors' Certificates of Insurance, attending public hearings on insurance matters, and helping legal counsel develop standards for such items as purchase orders and leases. Risk managers may also handle bid, performance, and permit bonds. Professional Networking. As in any professional field, continual contact with peers is essential. Membership in the following groups is recommended: Public Risk and Insurance Management Association (PRIMA) 1101 Connecticut Ave. N.W., Suite 1009 Washington, DC 20036 (202) 293-1892 Risk and Insurance Management Association (RIMS) 205 E. 42nd St. New York, ... risk manager must understand everything happening or about to happen in the organization. In addition to understanding the entity and its people through years of experience, the risk manager should: Physically inspect major properties often enough to know what's going on Talk regularly with key staff and operating officials Study the annual budget to attain a feel for each activity's financial aspects Review all requests for funds for changes Read contracts, bond indentures, leases, and similar documents that may have insurance clauses or indemnity (hold harmless) provisions Study reports of all insured and self-insured losses Read minutes of meetings of the governing body, and review the agenda to see whether any item has risk-management implications Establish dollar values of all significant loss potentials Risk Management Policy Development. The risk manager generally prepares a written policy for consideration and approval by ...