If you have a new contracting business, you may be uncertain as to how to find a surety company in New Jersey. As you have probably learned, the ability to bid on high-paying jobs is contingent upon being able to post surety bonds, also known as contract surety bonds or performance bonds, on a timely basis. Read on to find out how and where to obtain these bonds when you need them.
Surety Bond Issuers
The term “surety company” refers to the actual issuer of the bonds, i.e., the insurance company that underwrites them. These surety companies are often large property and casualty companies with departments that specialize in the issuance of surety bonds.
Sometimes contractors will refer to their insurance agency as their surety company, although technically the agency is an insurance producer, since they produce business for the insurance companies. Either way, you will need to find an insurance agency that specializes in this line of business since insurance companies do not normally deal with contractors directly. Therefore, for your business to be able to compete, you need to line up a good insurance agency ahead of the time.
By choosing an insurance agency with in-depth expertise in the complexities of contract surety bonds, you will have access to the right surety company in New Jersey when your next job requires a bond.