Need P&C Agent Advice

[gradyinsurance]

Never mind. I'll just quit asking questions on this board.

 

[Milkman1265]

There's a board sponsor that probably can get you that - suretybonds.com

try them...

 

[JimmyUt]

I haven't been on in a while, but when I was an active L&H producer I frequented this board. I am going into a new venture with a partner (Used Car Dealership), and we need a $50,000 surety bond in order to meet DMV's requirements.

I have been working with my personal P&C agent, but so far he's been unsuccessful in getting the bond written. His bread & butter is personal lines/auto/homeowners, and he has limited experience with commercial accounts. My credit is fair, 630 beacon, with decent assets. My partner has a 830 beacon, with ~500k in assets. Its a 50/50 split between us, and we're organized as a LLC.

Do any of y'all have an idea why we're running into trouble? We've been put through Erie & RLI, both said no.

I would also speak to other used car dealers in your general area about who they use. I used to work with a guy who's current business partner specialized in bonding for used car dealers and made quite the living at it. Very niche market. For the rest of your coverages, if Auto Owners is available in your area, their small dealer coverages are very good and inexpensive.

 

[gradyinsurance]

I would also speak to other used car dealers in your general area about who they use. I used to work with a guy who's current business partner specialized in bonding for used car dealers and made quite the living at it. Very niche market. For the rest of your coverages, if Auto Owners is available in your area, their small dealer coverages are very good and inexpensive.

I have tried to talk to other used car dealers around the area, but in general they're pretty closemouthed about their business practices, especially bonds & insurance.

The agent I've been dealing with quoted me just at 2,000 a year for garage liability on 5 dealer plates. Can anyone tell me whether that's high, low, or in the ballpark?

 

[farmerbrown]

His bread & butter is personal lines/auto/homeowners, and he has limited experience with commercial accounts. My credit is fair, 630 beacon, with decent assets. My partner has a 830 beacon, with ~500k in assets. Its a 50/50 split between us, and we're organized as a LLC.

Two problems. First, a PL agent getting with feet with with a troubled credit bond is biting off more than he can chew. What you need is not insurance 101. You are going to need someone who has established relationships to get this done.

Second, that credit is a bummer. Surety bonds are essentially financial instruments. Bad credit increases the price dramatically, and decreases the company options just as dramatically. You re really going to need a specialist to get this done.

Thank your PL agent for his help and find a bond pro.

Another option is to just put up the cash. There may be a reduced amount you can give to the DMV to hold in escrow. We had a client that needed a performance bond (for a city) but had terrible credit and financials. Instead of the bond, he brought a certified check to the city, and they held that in escrow until the job was complete. It cost him nothing, other than lost interest, and was an easy solution.

 

[farmerbrown]

Never mind. I'll just quit asking questions on this board.

What are you talking about? I think you got a couple good answers. Did we misunderstand the question?