 As the famous Bob Dylan song goes, times, they are a-changin'. This applies to the surety marketplace as well. For several years, strong profits, inexpensive reinsurance and competition in the surety underwriting business have worked to a contractor's advantage. However, this may be changing and contractors may start to see underwriting guidelines become stricter. An article in the January/February 2018 issue of Construction Executive states Cristian deRitis, senior director at Moody's Analytics while speaking at the Dodge Outlook Executive Conference in November loosely earmarked 2020 for the next recession.
Goldleaf Surety feels it is important for contractors to have a periodic surety checkup.
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A solid surety program can give a contractor an edge over non-bonded contractors.
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A solid surety program shows that the company has the financial wherewithal to tackle a job and fulfill its obligations.
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A company's bonding capacity is largely a reflection of the company's working capital, net worth and debt. Simply put, the stronger your balance sheet the greater your aggregate bonding capacity.
When determining a company's bonding capacity the surety will review a company's:
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Financial statements
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Capacity to perform
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Organizational structure
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Management
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Trade references
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Credit history
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Banking relationships
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Job profitability
Goldleaf Surety's advice to contractors is this:
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Maintain a healthy working capital in the company
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Get aggressive about collecting accounts receivable
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Minimize under-billings by reasonably over-billing contracts
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Limit stockholders' withdrawals to a percentage of the net income
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Avoid using your bank line to purchase equipment
In times of change, Goldleaf Surety Services is your constant in obtaining the best surety program available. For more information on bonds - or for help with your clients' bonds needs - log in to www.bigmarkets.com or email us at bigimarkets@iiaba.net and an underwriter will contact you.
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SPECIAL FEATURE
Consider Your Customers' Experience with ACT's New Tool
 The Agents Council for Technology has launched a new Customer Experience Planning Website. This interactive online resource is designed to help agents understand the customer experience lifecycle and leverage technology to achieve the ease of doing business consumers expect.
The site explains the six phases of the consumer buying experience- discover, evaluate, purchase, experience, renew and refer-and breaks down the technology touchpoints agents should focus on during each phase. Tools such as a responsive agency website, online reviews, eSignature, online chat and mobile account management all have a role to play as consumers move from being aware they need insurance all the way through their in-policy experience. The site provides clear descriptions for each phase and touchpoint, along with resources for agents to use to get started improving their agency's customer experience.
"Based on your core customer needs, your agency may not want or need to implement every recommendation," says Ron Berg, ACT executive director. "However, ACT's Customer Experience Planning Website will help your agency identify the top one or two things you can do to set your agency's ease of doing business apart in this rapidly-accelerating digital age."
Be sure to check out the Customer Experience Planning Website today. Learn more about ACT at www.iiaba.net/ACT.
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Connect with Small Business Customers
 According to Forbes, small business makes up half of the economy as a whole. It is a $70 billion marketplace, with $40 billion within the CNA small business appetite. With nearly 120 years of insurance industry experience, CNA has developed a wide array of coverages to protect small businesses, highlighted by CNA Connect® their flagship business owners policy.
CNA Connect® provides small business clients broad and relevant protection, with more than 300 optional coverage endorsements that offer increased deductible options and a wide range of limit options for both Property and General Liability coverages.
TWO REASONS TO CHOOSE CNA CONNECT®
CNA Connect® is available for more than 600 classes of business, offering flexible coverage options.
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Business Personal Property is coverage on premises and anywhere in the coverage territory in your care custody or control while you or your employees are traveling or moving between locations as the same limit.
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Liability Coverage automatically includes aggregate limits per location, Broadened Liability Extension and 9 types of Additional Insureds.
Employee Dishonesty and Employment Practices Liability are included within the base coverage offering for most insureds, with higher limit options available.
CNA Connect® is customizable with specialized Choice Endorsements and a wide range of limit options.
Choice Endorsements expand coverages for unique industry-specific risks, including:
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Accountants
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Architects and engineers
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Business services
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Lawyers
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Manufacturers
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Real estate agents and brokers
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Retailers
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Technology firms
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Wholesale/distributors
For more information, log into www.bigimarkets.com and click on Small Commercial or contact Big "I" Markets commercial underwriter Tom Spires at tom.spires@iiaba.net or (800) 221-7917 ext. 5470. This market is available in all states except AK, FL, HI and LA.
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NEW Cyber Insurance - Coalition Training Sessions
Big "I" Markets
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Dates: July 11, 12, et al
Time: 2:00 - 3:00pm EST
Cost: FREE
Summary:
Introducing Coalition Cyber Liability through the Big "I" Markets platform. Gain an understanding of how to enter business into BIM, be redirected to the Coalition website, view the automated risk assessment process, bind coverage and launch epay collection process for taxes and fees.
Panelists:
Shawn Ram - Coalition
John Roberts - Coalition
Aimee Fawns - Big "I" Markets
Please send any questions to Aimee.Fawns@iiaba.net.
Registration:
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NEW Pricing is Dead! Long Live Pricing!
Big "I" Virtual University
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Lightning Learning for July
Big "I" Virtual University
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Date: Wednesday, July 18
Time: 1:00 - 2:30pm EST
Cost: $49 (includes live presentation, recording and written transcript)
Summary:
Insurance agents are losing their influence on policy pricing. Underwriters are rolling out new tools such as artificial intelligence, machine learning, big data, and cloud computing. As a result, agents must ask themselves, "What is MY role if I am no longer able to influence pricing for my clients and prospects?"
Over the next several years, agents who disconnect their value proposition from the traditional "I can get you a great price" and relearn how to better service their clients will thrive. Those that don't will likely find there their performance levels quickly eroding. Attend this webinar and learn how to adapt to the process and change your game with solid strategies from instructor Frank Pennachio.
VU webinars offer comprehensive looks at industry issues. If you are looking for quick strikes of knowledge check out the VU's 20-minute Lightning Learning series that will focus on Personal and Business Auto Policies for the month of July. Please send any questions to VU staff.
Registration:
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Dates: July 10, 24, 31
Time: 11:00 - 11:30 a.m. EST
Cost: $9.99 for all three sessions
Summary:
The VU's July Lightning Learning series features three 20-minute sessions dedicated to Personal and Business Auto Policies Even if you can't participate in the live sessions, you will receive a link to the on-demand recordings and can listen to them at your leisure. Register once and attend:
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July 10 - Insurance and Autonomous Vehicles
Autonomous vehicles are coming, the only question is when. Many evolutions and revolutions must occur before US streets are fully autonomous and everyone in the vehicle is nothing more than a passenger.
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July 24 - Applying the "Business Use Exclusion" in the Personal Auto Policy
For most PAP insureds, the business use exclusion is irrelevant. In practical application, the PAP extends coverage for the business use of a "your covered auto" provided it's not used to carry people or property for a fee (i.e., Uber or Lyft). Absent material misrepresentation in the application regarding the use of the vehicle, the PAP responds to an incident arising from most business use.
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July 31 - Why Personally-Owned Autos Don't Belong on the BAP
Personally-owned autos belong on a Personal Auto Policy. However, sometimes you are forced by the insured to place the individually-owned auto on the BAP. Or, you add a personally-owned auto to the BAP without knowing it.
Consider presenting conference style for the entire agency to benefit. Please send any questions to VU staff.
Registration:
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BIG "I" MARKETS SALE OF THE WEEK
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