The Three C’s Of Surety Bond Underwriting And The Increasing Importance Of Character

BEFORE ISSUING A BOND, A SURETY WILL EVALUATE A COMPANY USING THE THREE C’S: (1) CAPITAL, (2) CAPACITY, AND (3) CHARACTER. AND WHILE SURETYSHIP IS NOT A FIELD THAT CHANGES OFTEN, A SMALL SHIFT TOWARDS RELYING MORE ON CHARACTER IN THAT EVALUATION HAS BEEN MAKING ITSELF MORE VISIBLE IN RECENT YEARS. Suretyship encompasses many traditional practices and is not...

How Chubb Is Navigating Coronavirus and Its Impact on Growth

Chubb Chairman and CEO Evan Greenberg insists his global P/C insurer has strong fundamentals, but warned at the same time that the ongoing pandemic crisis will spur unpredictable revenue challenges affecting many lines of coverage. Broadly speaking, the insurer will likely take hits on the liability side and earnings via at least a temporary reduction in premium revenues, Greenberg...

Construction Performance Bond Surety Relieved of Liability Because Bond Owner Did Not Provide Timely Notice of Default

legislation
A recent decision from the D.C. Circuit Court of Appeals provides notice to construction performance bond owners and sureties that a bond owner may forfeit its rights under a bond if timely notice of default is not provided to the surety. See Western Surety Company v. U.S. Engineering Construction, LLC, — F.3d —, 2020 WL 1684040 (April 7, 2020)  In...

Uncertain Surety: Expiration Of A Limitation Against A Principal Is Not A Defence To A Bond Claim

Sometimes failing to arbitrate a dispute with a binding arbitration provision can be fatal to a claim under a construction contract, particularly if the limitation period to commence the arbitration has expired.  But, in the case of a project with a performance bond, things can sometimes become more complex. Performance bonds are a common tool on major construction projects....

Wet Ink Signatures Requirements May Fade After Coronavirus

pril 10, 2020, 4:56 AM; Updated: April 10, 2020, 10:34 AMListen In-person signatures were on decline pre-virus Global pandemic has accelerated use of eSignatures, expert says Gabe Teninbaum was stuck in a precarious situation when he had to close on his mortgage refinance on March 24. At this point, states were in lockdown due to the coronavirus outbreak. Teninbaum, who...

Surety bond at issue in Merchants Greene contractor’s bankruptcy [CNA]

The cessation of operations at Trent-Wyatt Contracting, a Jefferson City-based company that had a large erosion-control contract at the Merchants Greene development in Morristown, has created a complicated legal wrangle involving city government and Western Surety, Trent-Wyatt’s former bonding company, officials say. Trent-Wyatt obtained a bond through Western Surety that guaranteed erosion-control work, including a piping system and catch...

The Importance of Reviewing and Complying with Performance Bonds

As we continue to cope with the economic impacts of the COVID-19 pandemic, it is important for participants in the construction industry to take affirmative actions to protect your investments in current and planned construction projects.  One of the ways owners and contractors can protect themselves is by ensuring that you understand how to enforce any performance bonds that you...

Douglas County warned activist group of $3 million surety bond if it filed lawsuit challenging jail expansion

Prior to local activist group Justice Matters filing a lawsuit last month against Douglas County’s plan to expand its jail, an attorney for the county warned that he would pursue a $3 million surety bond from the group if it went through with the lawsuit. In response, William Skepnek, an attorney representing Justice Matters, wrote a letter calling the...

Trisura issues coronavirus advisory for contractors

To aid brokers in guiding their contractor clients through the pandemic, Trisura Guarantee Insurance has issued an advisory with helpful suggestions and reminders. The advisory, authored by Trisura vice-president of surety and warranty claims Stuart Detsky, was posted on the company’s official blog. Contractors should contact all of their employees, sub-contractors, and suppliers, the advisory suggests. This will give contractors an...

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