If you’ve ever been forced to acquire a surety bond, you’ll realize that the process is a little bit stressful. Once you’ve become more familiar with it, the stress will diminish, but can still be a daunting task. Once you’ve acquired your surety bond, you’ll want to make sure that you keep it in good standing, so you won’t have to repeat the same steps again. Below, you’ll learn precisely how to keep your bond in good standing and valid.
When it comes down to it, your surety bond isn’t going to last forever. Although it will depend on the specifics of your contract, the mass majority of bonds will expire after a year. With this in mind, you’ll want to put in a substantial amount of effort putting measures in place to ensure you do not forget your renewal date. Be sure to mark the date down on your physical or digital calendar!
Obeying The Law
It probably already goes without saying, but if want to keep your surety bond in good standing you are going to have to adhere to all the Canadian standards and laws, which govern your profession. In the event that you do not follow these guidelines, there is a good chance that you will not only loose your bond, but also you can even loose your license. This pretty much means that you could loose you whole business altogether. If you are caught breaking the law, you will lose your bond and the refund will be forfeited! Suffice to say, you should behave and do your best to abide by the Canadian laws and regulations.
Avoiding Claims, If Possible
While, it is nearly impossible to avoid all surety claims, there are ways to keep them to a minimum. It is a fact that 25-40% of the claims filed by clients on surety bonds is erroneous and holds no merit. Of course, this is not the case, because you still have the other 60-75%. One of the best ways to avoid a claim, being filed against your surety company is completing projects in a timely manner.
If at any time, you feel that the contract is reaching a compromising position, you should immediately contact the client. There is nothing that will make the client more upset than not meeting the deadline.
The biggest problem, which often leads to bond cancellation, is failing to perform in a satisfactory manner. With this in mind, you should always do your best to serve your clients in a worthwhile manner. If you’re able to do this, you will be able to prevent claims and will not have to worry about expenses related to them. Also, be sure you remain communicative and keep the client aware every step of the way.
Remember that building a solid relationship with your surety provider is best. If you’re able to find a good provider, you’ll want to maintain the relationship, so they don’t drop you prematurely. In order to do this, you should follow the law, serve your clients in a satisfactory manner, and renew your bond, before it expires.