Bonds and Insurance Blog

8. The contractor’s liabilities should be listed seperately.
(a) It is important to realize that every contractor doing some
work has liabilities. Thus, if he says he owes no money, the
underwriter is skeptical.
(b) Material houses listed as creditors should be interview, in order to learn if the contractor owes what he says he owes. To see if he pays on time, earnes discount, pays satisfactorily, or pays slowly
Several materal houses should be interviewed, because sometimes people are anxious for a contractor to get a job, so he can liquidate an account that is worrying the material house.

6. Real estate should be described fully, stating the kind of
improvements, whether farm land, subdivision, city
lots, buildings, dwellings. If the property producers an
income, amount should be stated. Often the contractor ownes
property jointly with a spouse or has real estate in the spouses
name. If incorporated, corporate asset, such conditions dictate
indemnity of spouses needed.
7. List all of the larger pieces of the contractors equipment. Give
type, model, & capacity of each piece. Advise cost, date of
purchase, present value. If the contractor rents special
equipment, ascertain from whom he will rent, per deim of
equipment.

Question: What is contractor’s financial resources?
1. Obtain a full financial,personal and business. See that it is dated.
2. Verify statement with the bank, see if the average bank balance
over a period of six months or a year approximates that shown
in the statement. If it varies greatly, why?
3. Stocks and bonds should be listed and described specifically, so
their value can be ascertained from market quotations.
(a) Any unlistedsecurities should be given special treatment, so
that the underwriter will be able to give them full value in
estimating the contractor’s true net worth.
(b)If any security is pledge as collateral, this fact must be noted
in the underwriting memorandum accompanying the
statement.
4. List each account receivable seperately. The name of the debtor
should be given and the date when it is due or in the event it is
overdue, the date it is expected to be paid. Any receivable that is
withheld until completion of work, or during a maintenance
period, should be noted, giving the dates that the money’s are to
be released to the contractor.
5.The inventory should be divided into two classes:
(a) That part of the inventory that can be used in the contract
under consideration. This is a quick asset.
(b) All other material that does not have a ready market should be considered as a fixed ( or slow ) asset

Question, what is meant by what is his credit at the Bank?

How much can he borrow? How much has he obtained in the past? If a corporation, do the principal officers endorse the corporation’s notes?
Does he furnish collateral? If so, what kind?

What is the name and location of the bank? Name of bank Officer?

What is the process needed to apply for a Bid & Performance bond?
Upon contacting us, an application will be sent, which will give the necessary information for the underwriter to know who you are and where you are coming from. It is impossible to give too much information regarding a contractor. Everything the contractor does should be given to the company. His ability as an estimator can be determined by sending the company the list of bids submitted on all bids. Newspaper accounts of work, pictures are always helpful.

The following outline should be followed in the submission of the first contract bond, or with the first filing of the financial statement:
How is the contractor fitted for his business:
1 How old is he?
2 How long has he been in business?
3 What kind of work has he specialized in?
4 List the three largest contracts he has completed since he has
been in business for himself.
5 Is he a careful estimator?
A) Does he do his own estimating, or does he have an estimator?
If so, give the estimator’s experience.
B) Who checks these estiates?
6 Does he keep careful accounts, does he keep his own books, does
his wife do it, or does he have an experenced bookkeeper?

The council for Minority Business Development asked us recently if we would be able to provide Performance and Payment bonds. We are pleased to state the answer is yes in most cases.

[Contact Jack Condon via email or phone (1-800-921-1008) to find out about solutions for your specific coverage needs. And visit the website at http://www.bfbond.com/specialevents/]

Insurance coverage that can protect against rain, snow, wind temperature or lightning affecting your businesses bottom line profits. The entertainment industry is still the most frequent purchaser of weather insurance, since fair, festival and concert organizers/promoters have a limited opportunity for their events and need protection against the most uncontrollable aspect, the weather.

[Contact Jack Condon via email or phone (1-800-921-1008) to find out about solutions for your specific coverage needs. And visit the website at http://www.bfbond.com/specialevents/]

Can protect organizers against that big event being cancelled, postponed, rescheduled or abandoned. Event Cancellation Insurance policies can include coverage for weather, war, terrorism, satellite or signal failure, non-appearance of performers and key personnel. Ticket sales, advertising revenues and sponsorship monies are all sources of revenue that can be protected under our Event Cancellation Insurance. Alternatively, expenses incurred to organize an event can be protected.

[Contact Jack Condon via email or phone (1-800-921-1008) to find out about solutions for your specific coverage needs. And visit the website at http://www.bfbond.com/specialevents/]

These coverages are used alternately to protect against claims arising out of the use of vehicles leased, hired, rented or borrowed by you, or your employees, while in the course of business Non-Owned Automobile Liability, and to provide liability protection for autos used in your business that are not owned, leased, hired, rented or borrowed. This includes autos of employees and subcontractors that are used on your behalf.

[Contact Jack Condon via email or phone (1-800-921-1008) to find out about solutions for your specific coverage needs. And visit the website at http://www.bfbond.com/specialevents/]

This type of liability insurance provides coverage for bodily injury or property damage for which you may be held liable by reason of: Causing or contributing to the intoxication of any person; Furnishing alcoholic beverages to a person under legal drinking age or under the influence of alcohol; or Violating any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages. This coverage only applies if you are involved in the following activities: Manufacturing, selling, or distributing alcoholic beverages; Serving or furnishing alcoholic beverages for a charge, whether or not such activity requires a license or is for the purpose of financial gain or livelihood; or or Serving or furnishing alcoholic beverages without a charge, if a license is required for such activity. Most concerts this coverage is picked up by the venue or an outside vendor and they should provide this coverage for you.