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Originally Posted by Pacman It seems that Wage & Walfare bonds are getting harder and harder to get. Why? |
In two words, claims activity. The bond is a strict financial guarantee, assuring payment of wages and benefits for employees/union members. There are numerous variables to be considered in the underwriting process and loss experience dictates bonds be written only for the financially strongest with greatest experience with the unions and locations that require the bond. CPA-prepared financial statements - at least on a review basis - will probably be needed, too. If a company already has a line of credit established with a bond company, it's likely that company will support the union wage & welfare bonds needed by the company. It's far more difficult to get one or more written on a stand-alone basis because the surety's risk isn't diversified as much for that particular client.
08-01-2007, 03:04 PM
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