Surety & Builders Risk

Jun 2, 2019

  1. Sbonds
    Offline

    Sbonds New Member

    Posts:
    1
    Likes Received:
    0
    State:
    Florida
    Hello All. I am very green to the P&C sector. I decided to make a change after a long career in large scale construction management. I have recently become a producer for a local agency focusing solely on surety bonding, and builders risk products. I have read hours of articles online, and understand that a number of factors play into producer compensation, but I have a few questions below that I would love some feedback on. Again, I am very new, and just want to learn so any information is appreciated.

    - What is the average percent paid to the agency on a construction payment/performance bond & a builders risk product?
    - What is the average percent paid to the producer (not the owner) of an agency on a construction payment/performance bond & a builders risk policy? I know this varies, but what would everyone consider reasonable?
    - I always see that the producer gets X% on a qualifying bond. What constitutes a qualifying bond vs. non-qualifying?

    I know the compensation questions probably get old to some , but I would love to hear everyone’s thoughts on the below. I have exhausted all efforts short of cold calling other producers to ask.
     
    Sbonds, Jun 2, 2019
    #1
  2. BADTROUT
    Offline

    BADTROUT Guru

    Posts:
    592
    Likes Received:
    506
    State:
    Colorado
    For a VERY general rule of thumb, and I mean very conservative number. 20% to 30% on a bond. I use 25 to estimate. On builders risk there are MANY factors but I use .25 cents per 1000 coverage A times a 10% commission rate. I'm usually getting more on these but wanted to give you realistic numbers. Some pay more some I'm sure less but this will give you a ballpark.
     
  3. bluesky3000
    Offline

    bluesky3000 Expert

    Posts:
    21
    Likes Received:
    2
    State:
    Hawaii
    Wow these are some very good questions, hope someone can clearly explain them too
     
Loading...