How does the Bonding Agency make money

[Frank Robertson]

Two questions:
1: Typical P&C agencies receive commission based on the volume of premiums they write. How does the bonding agency receive their commissions? Are the commissions recurring or do you constantly need to sell more bonds?

2: "We utilize a wide variety of T-listed/A-Rated bonding companies” Who are these companies are they insurance carriers?

[Admin]

Frank,

It sounds like you are an insurance broker? Are you looking to get into suretyship?

1. It depends on the class of business. Commercial and fidelity bonds renew like insurance policies. Contract business is usually a one and done deal. However, there are certain contract bonds that may be require additional premium at a later date.

2. Sorry, we do not openly share information on our bond markets. Some do bonds only, some write insurance as well.