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BOND FAQ'S
Have bonding questions?
We’ve got answers.
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What Are Surety Bonds and Why Are They Important?Surety bonds are essential for various industries, offering financial guarantees and protection. They are crucial to ensure project completion, compliance with regulations, and safeguard against potential losses.
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How can surety bonds benefit my construction business?Surety bonds help construction companies secure contracts, enhance credibility, and mitigate risks. They also protect subcontractors and suppliers involved in your projects.
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How does Shorewest Surety Services establish a line of credit?Our agents will consult with the client to determine a solution that will best meet their current and future bond needs. From that consultation we will be requesting specific application information and/or financial information and company history needed to establish a bond line that meets their goals.
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What is your turn around time for a bond?We can set you up with a new surety relationship in a little as 2 days from the time that we have gathered all of our underwriting information and met with you. After your account is established, all of our bond requests are executed the same day that we receive them, and sent via overnight carrier to your office.
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What is the difference between a bonding agent and a surety?A bonding agent, often known as a bond producer or broker, acts as an intermediary between a contractor seeking a bond and the surety company providing the bond. They help contractors navigate the bonding process. On the other hand, a surety is the company that issues the bond, promising to fulfill a contract or compensate the obligee if the contractor fails to meet their obligations.
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What kind of fees are associated with bonds at Shorewest Surety Services, Inc.?At Shorewest Surety Services, Inc., we believe in transparent and straightforward services. That's why we don't charge bid bond, overnight mail, or annual underwriting fees.
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What are your rates for surety bonds at Shorewest Surety Services, Inc.?Our rates vary depending on the type and size of the bond required. Please reach out to our team for a personalized quote tailored to your specific bonding needs.
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What is a General Indemnity Agreement (GIA)?A General Indemnity Agreement (GIA) is a legal contract between the surety company, the contractor (principal), and the individuals or entities providing personal and corporate indemnity. It outlines the obligations and responsibilities of each party.
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Why does a GIA require personal indemnity?A GIA often requires personal indemnity in addition to corporate indemnity to provide the surety with greater financial security. Personal indemnity uses the personal assets of the individuals involved as collateral in case of a bond claim.
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