Not an ‘Ugly’ 4-Letter Word

This post is part of the series organized by the Old Republic guarantee.

The guaranteed bonds have gained the unfortunate reputation of being “ugly” or “anxiety” for independent insurance agents for many reasons.

Unlike the traditional insurance agreement, which is a two -party agreement between the insurance provider and the policy holder, one guaranteed bond includes three parties: principal, obligatory and guaranteed. The principal guarantees the payment or performance of its obligatory responsibility and if the principal is default, the guarantee will improve the responsibility of the obligatory obligatory (and then the search for payment from the principal).

In many ways, bonds are equivalent to financial credit lines that are spreading more than traditional insurance policies. That is why, some agents have declared them very complicated.

But with the right guarantee partner, anything is possible. On the first guarantee of the Republic, we are there to help agents through every phase of guarantee transactions, from bond selection to guaranteed education, communication and keeping hands along the way.

Beauty in bonds

If independent agents can lose basic business opportunities if they fail to see beauty in guaranteed bonds.

Agents who cannot offer bonds are at risk of losing clients from rivals. Meanwhile, those who put in guarantee can offer existing and potential customers maximum pricing services, which can receive a huge reward for the client’s attractiveness, satisfaction and maintaining.

Growth opportunities are important. There are thousands of guaranteed bonds available to help contractors in a wide range of professionals that ensure a responsibility performance and ensure compliance with legal requirements.

For some agents, the bond market is a catch 22 catch because there are many options to consider. But working with a space specialist can turn the product’s potentially tremendous pond into a targeted business opportunities.

It is also worth remembering that many guaranteed bonds are fast and easy to write. Agents can often meet the needs of their clients on the same day and immediately with a few clicks of buttons through the issue bond programs.

And the bonds themselves are sticking to it. They usually stay for a period of contract or plan, or coverage remains permanent until it is canceled. This is contrary to traditional insurance policies that can be purchased on an annual basis.

Finally, guaranteed bond commissions have beauty to look at, which can be from 20 % to 35 % or more in the soft market. This is a salary rate that shines compared to 10 to 15 % commission agents that usually earn on property and accidental insurance premiums.

Is the key to contribution

There is a lot to talk about offering and issuing guaranteed bonds, but for independent agents, positives are much more than any challenge associated with breaking the bond business.

The agent who considers the “bond” as an ugly four -letter words, perhaps lacks support that they need to be guaranteed. But with dedicated guaranteed companions like Old Republican guarantees, they will see the beauty in bonds long ago.

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