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Limits UNDER $500k Commercial Surety & Fidelity

Limits ABOVE $500k & Contract

Underwriting Help

For Commercial Surety | For Fidelity

Commercial Surety Underwriting Help


Underwriting Guide

View underwriting guidelines including class code & hazard code.

 

Underwriting Requirement Guideline
Use hazard code and bond limit to help determine requirements.

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Application FAQs

Q: How do I explain to my customer what it means to indemnify?

To indemnify means a promise to prevent or compensate for loss. Within our application, there is an Indemnity Agreement which holds the surety harmless of loss.

Q: Does the application or General Indemnity Agreement (GIA) have to be dated prior to the bond execution date?

It is preferable to have the GIA completed and dated before the execution of the bond; however, if circumstances do not allow this, using the current date will not invalidate the indemnity agreement or obligation on our bond.

Q: Who should sign the application?

The Principal (your client) should sign and date the application before the bond is executed.

Q: Do you require a completed application for all bonds, even bonds with Hazard Codes 1's or 2's?

Bonds with a Hazard Code of 1 to $50,000 and Bonds with a Hazard Code 2 to $25,000 do not require a completed signed application but you must provide enough information so that we can bill the bond. We will need the following: Principal's name and address Obligee's name and address and whether you want this agency billed or direct billed.

Q: Do you always require personal indemnity of owners of small businesses?

Having the personal indemnity of the owners always helps strengthen the underwriting case. Generally, whenever a company is a Sub-S corporation we will require personal indemnity of the owner(s) and sometimes their spouses. Our underwriting of the account may require us to request financial statements, and run credit reports.


Fidelity Underwriting Help

For commercial risks as well as governmental entities, complete the CrimeSHIELD application and submit to your Bond Center team. From there your underwriter can determine if more information is needed. Minimum underwriting requirement might be a list of separation of duties within the company.

Business-specific Applications
Can be used instead of the CrimeSHIELD application.


Questionnaires
The following business classes require additional questions to be answered along with the CrimeSHIELD application.


ERISA
Class Code: 872 Hazard Code: 1

The bond coverage should be valued at an amount that is at least:
  - 10% of the plan assets handled
  - $1,000, but not necessarily greater than $500,000 (or $1,000,000 if the plan holds employer securities or unless the Secretary
     of Labor prescribes a greater amount such as in the case of non-qualified assets)