How To Buy Surety Bond Insurance Philippines

Buying surety bond insurance Philippines can be an intimidating process especially for someone who is doing it for the first time. Chances are you are unfamiliar with the product, how it works as well as what to look for when in the market for a surety bond. This overview will help you understand the basics so you know what to look for beyond premium costs.

 To make the process of purchasing surety bond insurance easier, you will need a claims advocate. A lot of bonding companies are huge insurance carriers that deal with a tremendous amount of claims. In order to ensure that you do not become a number if a claim arises, you need to work with a bond professional that knows how to be your advocate. In so doing, they will work directly with you as your liaison in the process to thwart fraudulent claims and help you in resolving legitimate claims.

One thing you need to remember when buying surety bond insurance Philippines is that claims will cost you. Surety bonds are not insurance for you – the insurance is for your client(s). In case there is a claim on your bond, the bonding company that backs the bond will look to you for repayment of money paid out. If you are not familiar with surety bonds, you need to take the time to learn how they work and how bond claims can hurt you.

Also remember that all surety bonds are not created equal.  The surety bond provider is providing an insurance policy to your client(s). The beneficiary of these policies will require that only financially healthy companies can back the bonds to make sure that claim obligations are met. Instead of doing their own analysis of the bonding provider’s solvency, most of them use the financial grades. It is a good idea to gauge what is acceptable. A true bond provider will only sell bonds that meet or exceed the required standards.

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