What information do underwriters require?
Underwriters require three sets of accounts including the latest management accounts, the bond wording, and a signed application form.
What is a broker of record letter?
A broker of record is typical in this industry, and when underwriters require one it usually indicates that one or more brokers have already approached that surety on behalf of the developer.
What is a company guarantee?
This is a company counter indemnity (cross company guarantee) which effectively provides the underwriter an indemnity from your company in the event you fail to fulfil your obligations and the water company / local authority makes a claim upon the bond. It is a standard requirement with most surety bonds.
How can I strengthen my application?
The best way to strengthen your application is by:
- Improving your company financials
- Limiting your bond exposure.
- Providing as much information as you can with regards to your development.
How much will it cost?
Ultimately, it’s an insurance product, insuring against perceived risk of the underwriters, so just like car insurance the premiums can fluctuate massively according to the type of car, age, and history of the driver. As a result, the cost will depend on the profile of your company, which the application allows us to establish.
How long will it take to receive a quote?
We aim for 5 working days; however, this may fluctuate slightly. The lead time for a quotation is dependent on the responsiveness of both developers and underwriters. Sometimes underwriters ask for further information, which they require answers for before continuing and reviewing the application. To summarise, the more responsive you are and the more detailed the application is, the quicker we can provide a quotation.