- 1,581
We're an predominately personal lines agency but sometimes our clients need bonds for their business pursuits etc. Where do you go w/ this? Do you get setup with bond MGA'S or something? Or do you just refer it out
BONDS! Where Do You Go?
- Thread starter insurance1822
- Start date
- 1,016
- Thread starter
- #4
- 1,581
Thanks for the replies...curiously, what's the commission rate on bonds? Do you guys ever actively market them? Years back when I got into the business I heard of guys writing large bonds at like 30% commission?
- 791
In AZ, most contractor bonds issued thru RLI. Easy to get appointments with any bonding companies. Yes, 30% is average commission. Sometimes lose money on them, but you tie them into your agency. Also, need a notary in the office. Gets tricky on performance bonds and bonds on customers with shaky credit. Then you need a good GA to go thru, still 30% of higher bond premiums.
If you write contractors, very easy to do a BOR on their in force bond for future renewals. I always ask and get it. Little bit here, little bit there, ..all adds up.
Good Selling
If you write contractors, very easy to do a BOR on their in force bond for future renewals. I always ask and get it. Little bit here, little bit there, ..all adds up.
Good Selling
- 1,016
How does that happen?
SuretyBonds.com
Expert
- 39
Hello!
Suretybonds.com has a special program set up just for independent insurance agents who have clients that need surety bonds. Surety bonds covers a large variety of bonds, performance, contract, lost title bonds, motor vehicle dealer bonds, probate bonds, pretty much any bond type that is not considered to be a "bail bond".
If you are an independent agent with clients who need bonds for their businesses, big or small please feel free to contact me at:
[email protected] and just say you would like to become an Appointed Agent with Suretybonds.com! You will need to fill out a 1/2 page application and provide a proof that you have an insurance license for the state your client is needing to purchase a bond in as well as Errors and Omissions insurance.
It does not matter if the bond is big or small, we pay our agents 20% on any bonds issued at standard market and 10%-15% for bad credit markets.
- Rikki
Suretybonds.com has a special program set up just for independent insurance agents who have clients that need surety bonds. Surety bonds covers a large variety of bonds, performance, contract, lost title bonds, motor vehicle dealer bonds, probate bonds, pretty much any bond type that is not considered to be a "bail bond".
If you are an independent agent with clients who need bonds for their businesses, big or small please feel free to contact me at:
[email protected] and just say you would like to become an Appointed Agent with Suretybonds.com! You will need to fill out a 1/2 page application and provide a proof that you have an insurance license for the state your client is needing to purchase a bond in as well as Errors and Omissions insurance.
It does not matter if the bond is big or small, we pay our agents 20% on any bonds issued at standard market and 10%-15% for bad credit markets.
- Rikki
- 791
Hey Dan, didn't realize I missed this ?. So what I mean was lose money since you barely make any vs. the time involved.
and it would have been the same answer 2 1/2 years ago! Ha
Dave
GotSuretyBonds
New Member
Hey insurance1822,
Figured I'd provide some input - a lot of agents have CNA/Western Surety as there is a small contractor program with a 3% rate for bonds up to $500,000. These small contractor programs are great but tougher for instances where they grow and need bonds or an aggregate bigger than this.
In those cases, surety agents can help find a market that will be a good fit and establish a surety program with that market. By establishing a program, the surety company is willing to lower rates for your client and provide them with more flexibility when bidding jobs.
We can do this and typically pay our agents 30% commission on every single bond an account needs. So if you ever need a hand in terms of surety bonds, feel free to reach out! My email is Matt at SuretyBondProfessionals dot com
Figured I'd provide some input - a lot of agents have CNA/Western Surety as there is a small contractor program with a 3% rate for bonds up to $500,000. These small contractor programs are great but tougher for instances where they grow and need bonds or an aggregate bigger than this.
In those cases, surety agents can help find a market that will be a good fit and establish a surety program with that market. By establishing a program, the surety company is willing to lower rates for your client and provide them with more flexibility when bidding jobs.
We can do this and typically pay our agents 30% commission on every single bond an account needs. So if you ever need a hand in terms of surety bonds, feel free to reach out! My email is Matt at SuretyBondProfessionals dot com
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