Surety

TRUST... but VERIFY

At IAG we know the value that surety bonding can provide clients and have partnered with several Insurance Agencies becoming their outsourced surety department. We assist these agents by submitting underwriting submissions to carriers to establish surety credit lines for their customers. We service the daily bond activities and correspondence between the carriers, the clients, and the agency. As the agencies outsourced bond department, IAG Surety Services become an extension of the product lines the agency can offer and helps to solidify the Agency/Client relationship by being able to extend surety as a product line they can support for their clients.

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Our dedicated staff at Infinity Assurance Group has more than 50 years’ experience in marketing and placing Surety. Bonding is frequently required when entering into a Public Works contract, but can also be useful as a business development tool for financial institutions, contractors and other businesses.

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The ability to obtain bonds can differentiate otherwise similar businesses. It shows that your ability to perform at a high level has been analyzed by an independent third party. You have the experience and ability to perform. You have the financial capacity to undertake larger projects than your peers, and you have the character to stand behind your work. You’ll be there when others might 'cut and run'.

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Products & Services

We have extensive experience in all forms of bonding, including but not limited to:

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• Contract

  • Performance and Payment​

  • Release Lien Bonds

• Finance Lender Bonds​

• Warranty

• Subdivision

  • Off-site, On-site, Property Tax, etc​

• Supply​

• Area Franchise

  • ie: Agreements by Trash Haulers with Municipalities to collect in certain areas​

• Court Bonds​

  • Probate, Estate, Trustee, Appeal, etc.​

• License & Permit​

• Sales Tax

• Utility Deposit Bonds

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Benefits of Surety Bonding vs posting a Letter of Credit:

If you are offered the option of posting a surety bond in lieu of a letter of credit it is recommended that you do so. When a surety bond is in place it offers you a level of security in the event of a claim. When a claim is filed under a surety bond there is a due diligence process that needs to occur. The claim is researched for validity and only once a claim is deemed valid by the surety claim department is any action taken. If a letter of credit is used to secure the obligation, then the holder of the letter can call on the letter of credit on demand. Since this is a cash guarantee to the obligee once called upon the letter converts to a payment to the obligee (Holder of the letter of Credit) and an interest-bearing loan to the contractor (Post of the letter of credit)

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There are various types of letters of credit. Conditional letters of credit may require some burden of proof that the contractor has failed to perform before the bank will pay on the letter. A standby letter of credit is normally used for open accounts and deals only with payment of documented sums within a stated time period. A transactional letter of credit applies to a specific transaction. Most letters of credit are irrevocable, which means that both parties must agree to any changes to the letter of credit.

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Typical bonds used in construction are Performance of Payment (also called Labor and Materials) bonds. Performance bonds protect an owner from non-performance and financial exposures should the contractor default. The performance bond is tied directly to the underlying contract and if the contractor is unable to perform the contract, the surety has responsibilities to the owner and contractor for the project completion. The payment bond protects certain subcontractors, laborers, and material suppliers against non-payment by the contractor. Generally claimants will seek recovery directly from the surety company under the payment bond.

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In addition to the benefits provided by the surety, as surety bond is generally cheaper that the letter of credit and does not tie up cash. When given the option, always choose to post a surety bond in lieu of a letter of credit. We will happy to further discuss these benefits with you and assist you in establishing a surety line.

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We take great pride in the relationships we have built with quality sureties over the years. Our underwriters know from past dealings that we look for accounts that meet their specific underwriting requirements. We don’t waste their time, so they know we’ve done part of their work for them – and based on their experience with us, it’s been done right!

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If you feel that this type of working relationship may be of benefit to you or your clients, please contact us for further information.