Surety Bonds and Premium Financing

Surety Bond Assistance

Surety bonds help support certain contractual, licensing, court or business obligations. Unlike traditional insurance, a surety bond generally involves three parties:

• Principal: the person or business required to obtain the bond;

• Obligee: the party requiring the bond;

• Surety: the company providing the bond.

EDX Brokers helps businesses identify the bond requirements and submit information to appropriate surety markets.

Types of Bonds May Include

Depending on eligibility and underwriting requirements, available bond types may include:

• License and permit bonds;

• Contractor license bonds;

• Bid bonds;

• Performance bonds;

• Payment bonds;

• Maintenance bonds;

• Commercial bonds;

• Court bonds;

• Contract bonds;

• Subdivision and public official bonds.

Information Usually Needed

The bond application may require:

• Legal business name;

• Entity documents;

• Ownership information;

• Bond amount;

• Obligee information;

• Contract or bond form;

• Business and financial information;

• Prior bond history;

• Experience and project information;

• Indemnity documentation for certain bonds.

The requirements vary depending on the type and size of the bond. Larger contract bonds may require detailed financial statements, work-on-hand schedules, bank information and additional underwriting documents.

Our Process

We can help you:

1. Review the bond request;

2. Identify the obligee and required bond form;

3. Confirm the amount and effective date;

4. Collect the required information;

5. Submit the request to appropriate surety markets;

6. Review the quotation and bond conditions;

7. Coordinate issuance after approval.

Request a Surety Bond Review

Send us the bond requirement, application or obligee instructions so we can help identify the next steps.

Premium Financing for Commercial Insurance

Commercial insurance premiums can be significant, especially for laundromats, LRO portfolios, contractors and other higher-value businesses.

Premium financing may allow an eligible business to pay the premium through installments rather than paying the full amount at once. EDX Brokers can help clients understand available premium payment options and coordinate with premium finance providers when appropriate.

Premium Financing May Help With

Premium financing may be considered for:

• Commercial property insurance;

• General liability insurance;

• Commercial umbrella and excess liability;

• Workers’ compensation;

• Specialty commercial insurance;

• Multi-location property programs;

• Higher-premium renewals;

• New business placements.

How It Generally Works

A premium finance company may pay the insurance premium to the carrier or broker on behalf of the insured. The insured then repays the finance company according to the finance agreement.

The agreement may include:

• Down payment;

• Installment schedule;

• Finance charges;

• Service fees;

• Due dates;

• Cancellation provisions;

• Other contractual terms.

The finance agreement is separate from the insurance policy. The client should review both documents carefully before signing.

Important Considerations

Before selecting premium financing, consider:

• Total repayment amount;

• Finance charges and fees;

• Down payment;

• Installment dates;

• Cancellation consequences;

• Notice requirements;

• Whether the policy can be reinstated;

• How financed endorsements and return premiums are handled.

Failure to make payments under the finance agreement may result in cancellation of the insurance policy according to the policy and finance agreement.

Our Role

EDX Brokers can help you:

• Estimate the premium payment structure;

• Coordinate premium finance requests;

• Explain the relationship between the policy and finance agreement;

• Help organize down payment and installment information;

• Coordinate with the carrier and finance provider.

Request a Premium Financing Review

If you are reviewing a commercial insurance program with a significant premium, ask us whether premium financing may be available.