How to Do a Bond for an Insured Customer
As an insurance provider, you want to fulfill all the needs of your customers. Many businesses require bonds, as well as insurance, to meet local business requirements. While insurance covers losses because of liability claims if an employee or customer receives an injury while working or on your property, bonds cover claims against businesses if you or your employee fails to complete a job or steals from you or a customer. If your company does not provide bonds for customers, you can assist your customer in locating a bonding service by asking for recommendations from other agents or customers.
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Instructions
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Read your company's procedure for issuing bonds. If your company issues bonds, its employee manual will provide details on how to register a bond for a customer. If the information is not in the manual, contact the bond underwriter to inquire about the proper procedure.
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Give your customer a bond application for the type of bond he requires. There are numerous commercial bonds available and the type of bond your customer requires depends on the type of business he has. A commercial surety bond is the most required bond to qualify for a business license. However, the type of commercial surety bond still depends on the type of business your customer owns.
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Ask your customer for his financial information including a personal and company financial statement. Ask your customer to sign an authorization that allows you to check his credit if your application does not include the authorization. Run a credit check on your customer.
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Request any additional information required by your company. If your company requires a background check on applicants, you must receive a signed authorization form from your client. Other information required by some companies includes documentation of financial stability and proof of the applicant's experience and work history. Accept the application and issue the bond if the customer's credit and other information meet your company requirements.
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Tips & Warnings
Make sure your customer understands that a bond typically provides protection for his customers, not him. Employee dishonesty or fidelity bonds will not reimburse your customer unless the employee is convicted of theft.
