Surety Corner: Is your bond company slowing your growth?
Bonding facilities are generally subject to both a single contract limit and an aggregate contract limit. These limits are determined by a multitude of factors such as the financial position of the company, the contractor’s past experiences and the profitability and progress of the contractor’s current backlog. While most consider these bond limits to be more of guidelines than firm limits, they do represent the amount of exposure the bond company feels comfortable taking on for any specific contractor.
To read the full article by Jamie Collum and Andrew Cartwright from FCA Insurance, please click here.