From the Front Lines: Surety

How did you get started at your agency?

I’ve been involved in insurance for 35 years. I started off at another agency as an administrative assistant to the president of the agency. In doing so, I was exposed to the whole operation of a small agency. I went to school to learn more about insurance so that when I was representing the president, I didn’t seem unknowledgeable.

From there, I decided to see if I could help the attorneys that would come to us for court bonds from time to time. In an effort to assist them, I sent out marketing and acknowledgment letters, introducing myself to the local association. One of the members of the local association was the chief judge of Wayne County Probate Court. He contacted me and asked me if I would be willing and able to service the attorneys on a more one-on-one basis. So, I put everything together—the companies, space, and everything necessary to run a business.

Why surety?

For the most part, people don’t really understand what surety bonds are. A lot of times when you’re dealing with something people don’t understand, rather than try and understand it themselves, they’d rather just let you do it.

Biggest surety changes?

There once was a time in insurance when things were secured over a drink with a napkin. We eyeballed people, we trusted them on their word, and it ended up not being the best way to underwrite. What we have shifted to now is doing credit reports on everyone. I developed an application that my company now uses to address the things we need in order to successfully write our coverage.

Biggest surety challenges?

People are stealing a lot more than they used to. People used to have a sense of honesty in their word with their bond, but many don’t feel that way anymore.

Another challenge we have is that because of online banking, people have easier access to money, accounts, and information. Even though online banking is very much a plus for us, it’s also a big challenge to protect the assets we’ve been entrusted with.

Advice for a fellow surety agent?

One thing I would always impress on insurance professionals is to get as much of an education and an understanding of the product as they possibly can. If you network, then soon, everybody knows who you are, and they send everybody to you because they know that you’re the one that can get it done. I find that the best advertisement for me and my business is happy clients.

Favorite surety success story?

While serving on the board of the Michigan Association of Insurance Agents, I was successful in getting the state insurance bureau to recognize surety as a separate and limited line of insurance, which streamlined the licensing process for surety bond agents. I continue to work with the panels to develop test questions for the state licensing exams.

Will Jones is the IA assistant editor.