Wondering how we evaluate?

 

We classify Contractor Accounts based on the type of financial statement they produce and evaluate them based on important underwriting criteria such as experience, financial capacity, credit and bill paying history and the background of the business owners.


Contractors Who Do Not Obtain a CPA Prepared Financial Statement

Including established contractors that are frequent bond users, contractors who only occasionally need bonds, startup companies and contractors that have never been bonded. 

We are looking for contractors with established experience in completing projects.  We will give credit to newly formed contractors based on the owner’s industry experience in prior employment.  We help contractors grow by making bonds easier and by getting bonds approved on larger jobs.

We help Insurance Agents develop their small contractors into solid P & C accounts.

UNDERWRITING REQUIREMENTS 

To establish an account in this category we require:

  • Contractor Questionnaire. Download Form

  • Internal financial statements (Balance Sheet and Profit & Loss) from accounting system

  • Personal financial statement from equity owners. Download Form

  • Evidence of business cash deposits. (Copies of bank statements, etc.)

  • Owners resume of experience in trade or line of work.

  • Most recent business Tax Return.

For any pending bond requests we’ll need:

Rates and terms provided following review and approval. 

We can often provide indications of bonding lines (per job and aggregate bonding capacity) to contractors in this class.


Contractors Who Obtain CPA Prepared Financial Statements

We have markets to bond any contractor from small, mid-market contractors to premier, best in class, Sub-Contractors and General Contractors. We bond contractors who regularly require bonds or contractors who are infrequent users of bonds

We underwrite contractors based on the character and background of the owners, their prior job experience and through analysis of financial statements.  We help contractors grow by getting larger bonds approved, and by providing advice and counsel on financial statement preparation, target financial results and financial planning, including continuation planning.  

We pride ourselves in hand delivery of bonds in our local area.  No waiting and worrying about overnight delivery.

UNDERWRITING REQUIREMENTS 

To establish an account in this category we require:

  • Contractor Questionnaire. Download Form

  • CPA Financial Statements for most recent and prior fiscal year end.

  • Internal financial statements (Balance Sheet and Profit & Loss) from accounting system as of the end of the most recent Quarter.

  • Personal financial statement from equity owners.  Download Form

  • Owners resume of experience in trade or line of work.

  • Most recent business Tax Return.

For any pending bond requests we’ll need:

Rates and terms provided following review and approval. For contractors in this category we provide bonding lines (per job and aggregate bonding capacity).

We can also bond contractors whose financial statements are not in the proper contractor format or whose statements show poor or below average operating results.