Surety bonds are the lifeline of contractors and are paramount to their success. At Garrett-Stotz we believe that developing strong relationships with our clients and sureties is the key to providing successful bonding programs.
Garrett-Stotz has been specializing in surety bonds since 1931 and is one of the largest bonding agencies in the state. Our proven track record has helped to develop strong partnerships with a number of sureties, each with varying risk appetites. This allows Garrett-Stotz to service a wide range of accounts – from local to regional, family-owned to ENR400 companies. We welcome any opportunity to our current or new clients with their bonding needs.
Our expertise in the bond industry allows us to act not just as a liaison but also as a trusted advisor to help ensure bonding capacity and responsible growth.
Here are the standards we strive to achieve for each of our clients:
- Issuance of bonds within 24 hours
- Provide financial analysis – how the surety company views your account.
- Establish in-house underwriting authority for handling your routine bonding requirements
- Annual meetings with clients and their surety underwriter (more often as needed)
- Prompt review of contract and specification documents, as well as bond forms
- Establishment of back-up surety
- Analysis of surety markets – incumbent as well as alternatives
- Analysis of surety marketplace – current as well as future implications
- Specific expertise in unique situations i.e. joint ventures, design/build, public-private partnerships (PPP), teaming agreements, continuity plans, etc.
- Promote creativity & innovation in problem solving
Commercial & Miscellaneous Bonds
At Garrett-Stotz we have the surety markets and the expertise to write many other types of miscellaneous bonds. For example, prior to starting operations many businesses are required to file a license or permit bond with the local municipality where they want to do business.
The following is a brief list of these types of bonds:
- License & Permit
- Court/Fiduciary Bonds, e.g. Appeal Bonds, Trustee Bonds, Custodian Bonds, Guardian Bonds, Injunction Bonds, etc.
- Public Official Bonds
- Notary Bonds
ERISA Fidelity Bonds
Garrett-Stotz writes the ERISA Fidelity bonds for many of our clients. The requirement for this bond came about in 1974 when the Employee Retirement Security Act (ERISA) was enacted. This fidelity bond is required of the fiduciary or anyone who handles the funds of a benefit plan. The bond’s purpose is to protect the plan’s assets from dishonesty and fraud committed by individuals associated with them.
ERISA requires this bond must be no less than 10% of the plan assets with a maximum of $500,000. An exception to this came as the result of The Pension Protection act of 2006. It increased the maximum to $1,000,000 for those benefit plans that hold the employer stock or other employer securities.
These bonds are extremely affordable and rather easy to obtain. The underwriting usually consists of a simple one-page application.
What happens if you do not maintain an ERISA bond in a sufficient amount? It is a major red flag to the Department of Labor who will likely audit and scrutinize your plan. Contact our office today to make sure your project is properly covered.