performance and payment bond

171. HOW TO Replace an ILOC with a Subdivision Bond

 

The Land Developer’s money is tied up because an ILOC* was used to secure the township instead of a Subdivision Bond. It’s not too late to fix this critical error! (Why an error?)

Here’s how to do it:

  1. Have your insurance agent contact us or the land developer can call us directly to start the process.
  2. We’ll get to know you and find out about the project.
  3. We approve the bond, and normally no collateral (security deposit) is required!
  4. Contact the planning board and request permission to replace the ILOC with a Subdivision Bond.
  5. We issue the bond. The developer’s ILOC, and the funds that back it are released!!

It’s just that simple…

Let’s go! Call FIA Surety: 973-541-3417

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

*Irrevocable Letter of Credit issued by bank

 

 

Increased Production

Ever wonder why a surety bond underwriter asks you for new business?

  • Is it because they are nosy and want to gauge your agency strength?
  • Does the surety has a loss ratio problem?
  • Has poor customer service caused the underwriter to fall short of goals?
  • Or maybe the underwriter has a sincere interest in deepening your relationship for mutual benefit.

FIA has been writing Site/Subdivision, Bid and Performance Bonds for over 40 years.  We are “A” Rated and having an excellent 2020!

“Can we help you with any new business?”

Call: 856-304-7348

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

Changing Horses: Site & Subdivision Bonds #169

Abe Lincoln said it.  And it’s mostly true.  But here is one time when it really does make sense to “Change Horses In Mid-Stream!”

When Developers and Home Builders start a new project, they give security to the city or township guaranteeing the construction of public improvements (streets, curbs, lights, water, sewer, etc.) The security may be in the form of cash, a bank issued irrevocable letter of credit (ILOC), or a surety bond.

They’re all the same to the township, but there are huge differences for the contractor. The most obvious is the loss of use of their funds. How long will the money be tied up? It can take much longer than expected to get these obligations released (the township is in no hurry!)

If a dispute arises and cash or an ILOC was used, the township just takes the contractor’s money.  It’s all over.  With a surety bond, there is a discovery process through the claims department.  The contractor has input and may affect the outcome.

So, back to the horses.  For clients that have already posted cash or an ILOC, they can swap it out with a surety bond!  Get their money back. Gain more control. Protect company assets.  Put the cash to good use!

How to start? Call FIA Surety.  Since 1979, we have been a steady provider of site and subdivision bonds.  We do little $20,000 site bonds for commercial property owners and have written multi-multi million dollar subdivision projects.  Come to the experts to swap in a surety bond, or to write a new project. We get them done!

Read expert analysis: Why Surety Bonds are the way to go here.

Call FIA Surety: 973-541-3417

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

 

FIA Surety: Turning “DUH!” into “TA-DAH!”

How it started: “Hi Steve, I have a strange scenario I hope you can help me with.”

Our agent had a performance bond client established with a surety and the SBA program.  They needed a P&P bond for a municipal project and the surety demanded payment in advance.  The client could not comply.

The award and notice to proceed were issued and the contractor commenced with the work – but the obligee forgot about the bond, until now. The contract is completed but the client cannot receive their final payment until they file a maintenance bond.  Due to weak credit, the surety is refusing to issue unless they add additional indemnitors.  The job is finished: DUH!

We gathered a file and asked for a status inquiry form from the obligee (to confirm the degree of completion and obligee’s satisfaction with the project.)  The contractor passed along the form, but the project manager refused to complete it, stating he “never saw one of these before.” DUH #2!

We made contact with the township engineer and after a friendly conversation, were able to verify everything was OK and they promptly completed the form for our records.  We evaluated the bonding requirements and determined that the Performance bond form contained an 18 month maintenance clause (no separate maintenance bond), so the P&P bond was still needed.  FIA Surety issued it, and with no SBA support or additional indemnity required: TA-DAH!

The agent is happy.  The contractor is happy.  The township has a completed project with maintenance coverage. We bonded a job that was completed and accepted.  Now was that so hard?

FIA Surety is First Indemnity of America Insurance Company, your go-to carrier for Site, Subdivision, Bid and Performance bonds. Call 856-304-7348

Making TA-DAH moments for our clients since 1979.

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

FREE CE!

First Indemnity of America Insurance Company

An “A Rated” Carrier

2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-541-3417

FIA Surety is First Indemnity of America Insurance Company, a provider of Site, Subdivision, Bid and Performance Bonds since 1979.  Call us when you need a surety bond!

Through our accredited FIA Surety School, we offer continuing education courses for insurance agents.  These courses are provided free of charge, a service of FIA Surety. You can participate in these teleconference sessions from the convenience of your home or office computer.

Use the registration form below and join us for the next CE webinar!

At the current time our teleconference courses are approved for resident agents of:

  • Florida
  • Georgia
  • New Jersey
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Additional states coming soon!

Upcoming:

  • November 2, 2020, Monday 9:00 am to 12 noon Eastern Time, teleconference CE class “Surety Bonds 101 Webinar” (3 CE credits)
  • December 1, 2020, Tuesday, 9:00 am to 12 noon Eastern Time, teleconference CE class “Understanding Site and Subdivision Bonds Webinar” (3 CE credits)
  • There WILL be future dates added for both courses.

To attend our webinars, please complete the form below and we will send you a confirmation email. Please register at lease five days before the scheduled class date.

Questions?  Call us!  Steve Golia, Director 856-304-7348

FAQS:

  • Q. Are the Continuing Education classes approved by the state? A. Yes all our courses are fully approved by each state where we offer them.
  • Q. How many credits are provided in each course?  A. Three CE credits per course.  You can get credits for each course once per license cycle.
  • Q. Who is eligible to attend these classes.  A. Any licensed P&C agent is allowed to take our courses.
  • Q. How many people from our agency may attend? A. One or more may attend.  Tell your colleagues not to miss it.
  • Q. How much do the courses cost?  A. All our courses are free, a service of FIA Surety.
  • Q. How is the course delivered?  A. These are teleconference courses (webinars) you may attend from any computer at work or home.
  • Q. Do I need special software?  Do I have to buy anything?  A. This is a “Zoom” meeting.  Free!
  • Q. How do I attend a future course?  A. Complete the brief registration form below and we will process your reservation.
  • Q. Can I take a course immediately before my license renewal date?  A. You can take our courses any time during the term of your license.  However, time is needed to post and process your credits, therefore we recommend attending the courses at lease 60 days prior to your anniversary.
  • Q. What do I need to do during the course?  A. You need to be present continuously, give the program your undivided attention and respond to our attendance verification prompts.
  • Q. When are the classes held?  A. From 8:45 am to 12:15 pm (includes set-up and break time.)
  • Q. Is there a final exam?  A. No.

REGISTRATION FORM

Thanks for submitting your registration!

Graduate from the SBA

Congrats to the kids!!  They finally made it.  Now its their time to move on and move up.  What about contractors in the SBA Bonding program?  Is it their time to graduate?

The SBA program is a great help, and the people are awesome: dedicated, helpful.  But the program has a down side.  It costs time and money to obtain their bonding support.  So if a contractor could get federal and other projects without this extra step, why wouldn’t they?

Here’s what you gain, more or less, by graduating into a regular surety relationship:

More

  • Time to pursue productive activities – new projects, strategic planning, employee training, educational opportunities, etc.
  • Time for other personal and family priorities
  • Profits on your projects and financial statement overall
  • Increased profits can lead to higher bonding limits and bigger projects
  • Credibility – a graduated company no longer needing extra help

Less

  • Bonding expenses (bond premium plus SBA fee) on each project
  • Time spent filling out double forms for the surety and the SBA
  • Answering questions to both
  • Waiting for approvals

OK, so if graduating sounds great, how do you do it?

Step one: Ask the current bonding company to provide bonds without the SBA program.  If they do it, you can thank us later!

Step two: If they refuse, call FIA Surety!  We provide bonds for federal and local projects without the need for SBA support.  It takes a creative, experienced surety to graduate contractors.   FIA has been providing Bid, Performance & Payment, Site and Subdivision Bonds since 1979. We’re steady.  We’re willing.  We’re creative.

It’s time to graduate!

For Site, Subdivision, Bid and Performance Bonds call Steve Golia: 856-304-7348

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

Get to Know FIA Surety: Bruce Nash

Here is surprising info about Bruce Nash, a key person at FIA Surety.

Nurture vs. Nature.

Bruce didn’t have a choice. His family was married to the lake.

Our Bruce was born in the beautiful town of Lake George, NY and he has two siblings. The main feature of the town is… obviously the lake. 32 miles long, with over 170 islands, this is a gorgeous Adirondack setting. And Bruce’s family had strong ties to it.

The family business was a marina his grandfather founded in 1928. Bruce grew up in the business where he did “everything.” They loved the water, and this meant boating and also sea planes flown on the lake.

Bruce’s grandmother was the first female commercial pilot in Warren County, New York and part of the WAACS (Women’s Army Auxiliary Corps) during WWII. Bruce’s grandmother and grandfather both trained pilots before, during and after the war.

This is his grandfather’s 1928 Garwood, “The Jug,” it was the super boat of its day. Some were called “Rum Runners,” because those equipped with V-12 engines could outrun the prohibition era police boats! Bruce’s grandfather was a Garwood dealer and bought it new. Bruce won dozens of awards for maintaining it in its original condition.

Bruce worked three jobs to put himself through college, a graduate of DePaul’s computer programming school in Chicago.

When boating season ends, upstate New Yorkers turn to winter sports. After college Bruce took a position with Bombardier Corp, a snowmobile manufacturer. Over the course of ten years he rose to become Director Systems and Marketing for the U.S. operations in Chicago.

His next employment was with the owners of The Robert Plan (Div. of AIG) where he became President of a boat manufacturing facility located just outside of Nashville, TN. After a few years he moved to N.Y. where he became Sr. VP and Chief Information Officer of their Assigned Risk Auto business. His Robert Plan boss left the firm to become president of FIA’s sister company First MCO, and he enticed Bruce to join him.

He became head of our IT department and is now the President and COO of our sister company First Managed Care Option, Inc. and ActiveCare Scheduling (a PT and Imaging Facility scheduling service.)

Bruce designed a state-of-the-art system for the managed care of auto and workers comp claims – which is the function of First MCO. This rapidly growing business currently employs eighty people and is housed at FIA’s Morris Plains home office.

He also developed a specialized imaging system that allowed FIA to move all its archived and active paper files into one central electronic location.

“IT Geek?” No, not Bruce! Like his grandfather and grandmother before him, he became an aviator. Naturally, this led to skydiving (gulp!). The snowmobile business inspired him to become an accomplished snow racer. He was also a SCUBA diver and moto-cross (motorcycle) racer!

Today, Bruce manages to skip most of the high-risk activities, but he is a Merchant Marine Captain and avid deep-sea fisherman.

Bruce brings great technical skills, plus a bit of “dash” to our FIA family. He is a valued member of the team!

For Site, Subdivision, Bid and Performance Bonds call Steve Golia: 856-304-7348

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

Get to Know FIA Surety: Glenn A. Runne, CFO

He’s a CPA, but he only uses his powers for good…

Super CPA

Glenn Runne was born in Kew Gardens, Queens N.Y. and grew up in North Bergen, N.J. He is the oldest of three kids.

His mom was a secretary and dad drove a truck. They also owned a neighborhood Bar and Grill for a few years.   From an early age they stressed the importance of a college degree. Typical for a “first born,” Glenn became a high achiever.

Glenn graduated North Bergen High School in 1972 and Montclair State University in 1976 with a BS in accounting and finance. He paid his own way through.

With a degree in hand, Glenn landed an accounting management position at N.J. Life Insurance Company. This gave him a strong foundation and he became a Certified Public Accountant in 1987!

A couple of years later, Glenn’s brother-in-law introduced him to Pat Lynch. Pat’s young company, First Indemnity of America Insurance Company, was in its second year.  Glenn’s expertise in accounting and taxes was a perfect fit. He joined the firm as VP and CFO in 1979.

In 2012 Glenn received the coveted “Chartered Global Management Accountant” designation.  This is international recognition of the world’s top professionals in his field!

More accomplishments:

  • Plaza School of Business – Adjunct Accounting instructor
  • Bergen Community College – Adjunct Accounting instructor
  • The Children’s Corner, Founder, Treasurer and Board of Directors member of a non-profit childcare center
  • Lake Hiawatha Country Club – Treasurer, Board of Directors member
  • Fellow in the American Institute of Public Accountants
  • And the New Jersey Society of Certified Public Accountants.

With the help of his wife, Denise, Glenn raised 3 daughters: All college graduates with master’s degrees. Two girls became teachers and one is a certified public accountant. The apples fell close to the tree.

Glenn’s outside interests are physical fitness and attending New York Giants football games with his long-time season tickets.

If you did the math you see that Glenn is one of Pat’s many long-term employee/colleagues. His work has expanded proportionately with our organization.  Currently, Glenn oversees the accounting for our seven companies which includes three audits. He is also responsible for all the tax returns, plus forty-five states where we file.  Whew!

The dedication of long-term colleagues like Glenn is one of FIA Surety’s greatest strengths. 

Carry on, Glenn!

For Site, Subdivision, Bid and Performance Bonds call Steve Golia: 856-304-7348

FIA Surety / First Indemnity of America Insurance Company  Visit us: www.fiagroup.com
We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

NO GOOD REPORT FOR FIA SURETY

Oh, the irony!

Last week Patrick Lynch Jr. received glowing praise over our handling of a recent bond request.  He asked the agent, “Wow thanks, do you mind if we use that in our advertising?”  The agent refused!

Why?  He said he wants to keep us all to himself!    Gotta love it.

Are you that enthusiastic about your surety underwriters?  Find out what you’re missing…

For Site, Subdivision, Bid and Performance Bonds call Steve Golia: 856-304-7348

FIA Surety / First Indemnity of America Insurance Company  Visit us: www.fiagroup.com
We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

Get to Know FIA Surety: Paul Alongi, Sr., Claims Manager

When was the last time you spoke to a personal friend of Joe Pesci and Frankie Valle? Ok, never? Well, meet our Claims Manager, Mr. Paul Alongi, Sr.

Paul was born in Newark, the oldest of four children and graduated from Barringer High School.  Joe Pesci and Frankie Valle were among his friends. Born with a love of music, he learned to play tenor sax at age 7.  As a big band member, his group backed up Connie Francis, Dion and the Belmonts, Tony Bennet, Xavier Cougat, Al Martino and others.  To this day, Paul is an active musician playing in several venues.

He was athletic, too!  Paul tried out for the NY Yankees in these early years.

Paul started his insurance career in the actuarial department of U. S. Life and studied for his law degree at night. In five years, he graduated from Seton Hall Law School and started his law practice.

While running for public office, Essex County Freeholder, he met a fellow candidate, Patrick Lynch.  Years later this would result in Paul joining Pat’s young company “First Indemnity of America Insurance Company / FIA Surety” to become our first Claims Manager.  He’s been a valuable asset all these years.

Paul has served on the Bloomfield Board of Education (President), the New Jersey Commission of Investigations, and has also been a long-time leader in many community organizations, including: the Bloomfield Federation of Music and Civic Band, the Garden State Concert Band, St. Thomas the Apostle Parish and Finance Councils, Holy Name Society and Circle of Friends.

Paul is a highly experienced problem solver and, he is accessible to our agents and clients!  973-541-3414

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX