Blogs

NASBP launches surety-focused ethics course for CE credit

By Kathy Hoffman posted 10-13-2015
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NASBP has introduced the online course, “ Ethics for Surety Bond Producers ,” to provide surety professionals with continuing education ethics credit specific to their industry, as well as to benefit nonmembers who work closely with the industry. Most states require three hours of continuing education every two years for bond producers to be licensed. Many ethics courses, however, are more broad and only focus on insurance, so NASBP decided a surety-specific course was necessary given the unique three-party relationship involving a principal, an obligee, and a surety. “Everything in this course is going to resonate with a surety bond producer as relevant ...
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New Certification Requirements for Veteran-Owned Small Business Concerns and Service-Disabled Veteran-Owned Small Business Concerns Seeking Public Procurement Contracts

By Kathryn Doran posted 01-30-2023
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By Jennifer Harris , Timothy D. Matheny , Abby Bello Salinas of Peckar & Abramson, P.C. Originally Published January 26, 2023 Effective January 1, 2023, Veteran-Owned Small Business Concerns (VOSBs) and Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBs) will be required to obtain Small Business Administration (SBA) certification to participate in any federal government agency VOSB or SDVOSB sole source or set-aside prime contracts. This change originated from a Final Rule (87 FR 73400) published by the SBA on November 29, 2022. As a result of this Final Rule, not only will VOSBs and SDVOSBs be required to re-visit, and in some cases re-apply ...
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Register Now for the NASBP Federal Construction Contracting Seminar held June 11 - Washington, DC

By Kathy Hoffman posted 02-27-2015
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In recognition of the need for education on procurement dos and don’ts and on the creation of proper relationships in the federal construction arena, NASBP is offering a one-day, intensive seminar that will explore hot, critical issues in federal construction contracts: "Creating a More Perfect Union? Relationships That Work and Those That Don’t in Federal Construction Contracts." This seminar has been developed for bond producers, surety underwriters, contractors, and subcontractors and will be offered in Washington, DC, on June 11, 2015, the day following the NASBP Legislative Fly-In. Attendees will learn about dos and don'ts in public contracting relationships, ...
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NASBP Adds “Survey of State Anti-Directed Surety Statutes” to Collection of Information Maps

By Lawrence LeClair posted 10-31-2017
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​ In response to NASBP member requests for information about states prohibiting directed suretyship, NASBP has released its Survey of State Anti-Directed Surety Statutes information map. The map is the latest in a series the Association has produced to provide Members, Affiliates, Associates, and their clients information on local legislative activity, governmental initiatives, and other resources—right at their fingertips. With bond producers often working in multiple states and impacted by various statutes, things can get confusing quickly. “A lot of the work our members do is state-level work, and all the different public ...
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NASBP launches Surety Bond Quarterly to communicate surety industry's value

By Kathy Hoffman posted 06-23-2014
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NASBP’s new publication, Surety Bond Quarterly , is designed to offer insights and information for surety professionals as well as others who need to stay up-to-date on the industry’s latest news and developments. The free magazine will be available in a glossy print edition as well as digitally. Its premiere issue is being delivered this summer. “I am excited about the new Surety Bond Quarterl y, because it will help us to confirm and reinforce why surety bonds are still the best and most cost-effective way to help construction businesses and public and private owners alike manage risk and protect all parties, and surety bonds are still by far the ...
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International commercial surety bonds pose complex situations for producers

By Kathy Hoffman posted 04-21-2015
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Interest in international commercial surety bonds has risen in several regions of the world, creating opportunities and challenges for producers, said Kathleen Mitchell, National Practice Leader for Surety at Wells Fargo Insurance Services USA, Inc. She served as moderator of a Tuesday, April 21 session on the topic at the NASBP 2015 Annual Meeting & Expo, in San Diego. Mitchell said that, when the global economy began undergoing significant changes in 2008, U.S.-based clients doing business internationally were looking into options other than the letter of credit, which is commonly used in other countries. Initially, she noticed more inquiries involving ...
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Coalition seeks tougher scrutiny for individual sureties used by federal contractors

By Shannon Crawford posted 03-26-2015
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A coalition of eight associations, including NASBP and the American Subcontractors Association, is calling for changes to Federal Acquisition Regulation the (FAR) to place stricter requirements on individual sureties used by contractors on federal projects. The coalition in February sent a letter to Anne Rung, Administrator for Federal Procurement Policy at the Office of Management and Budget, requesting the modification to ensure that assets pledged by an individual surety are “real and readily available.” Currently, acceptable assets backing an individual surety bond include stocks, bonds and real property owned in fee simple, but such assets have proven ...
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Two Regional Meetings kick off next week – Don’t miss out!

By Bethany Jones posted 09-15-2010
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The Regional Meetings for Regions 10 & 11 and Regions 4, 5, 6 & 7 get started next week. They both debut a new condensed format designed to maximize value and minimize travel costs to the attendees. And they are being held in central, easy to access locations in their regions. Meeting programming is a big focus for both regions, striving to give the attendees valuable information to take away from the events. Both meetings feature an update from headquarters that will highlight what the association is currently working on to improve value to the membership and advocate for the industry. Regions 10 & 11 in Connecticut will feature ...
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NASBP Attorney Advisory Council’s valuable resources now available from nasbp.org

By Shannon Crawford posted 07-09-2015
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To enhance NASBP’s already robust educational offerings to its members, affiliates, associates, and the public, NASBP recently posted valuable materials and information from those serving on its NASBP Attorney Advisory Council (AAC) to nasbp.org. These materials cover topics including commercial surety bonds, federal construction contracting, risk management, and surety bond claims and dispute resolution. More materials are soon to be posted to the webpage on these topics: construction industry, contract surety bonds, contract terms and conditions, project-delivery methods (including P3s), and small business issues. The NASBP AAC was developed this year ...
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Two exciting NASBP Workshops planned for the fall

By Ann Latham posted 08-27-2010
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It's "Back to School" time for students around the country, and in the spirit of the season we have two outstanding educational offerings planned for this fall. In September we will offer our new Sales Workshop for Surety Professionals . Designed from the ground up to meet the specific needs of surety professionals, this workshop will offer practical tools and techniques that will produce immediate results. The faculty and staff are busy finalizing all of the details of this new offering and it's shaping up to be a groundbreaking event for our industry! The second offering of the season will be our Risk Workshop: Analyzing Risk and Understanding ...
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NASBP's 5-15 Leadership Circle to offer more mentorship opportunities

By Kathy Hoffman posted 04-19-2015
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NASBP's 5-15 Leadership Circle has expanded its pool of mentors available to provide insight to future leaders of the surety industry, Committee Chairman Brian Ayres said at the 2015 NASBP Annual Meeting & Expo, in San Diego. The number of 5-15 program members now totals 41, exceeding the number of mentors, who had been drawn from past presidents and former members of the group, Ayres said. A change this year will allow current and former board members to serve as mentors, as well. The mentorships help address age, talent and knowledge gaps in the surety industry as mentees learn how to “get comfortable being uncomfortable” in their knowledge levels, ...
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Indemnitors’ Obligations: If the Surety Suffers a Loss, You’re On the Hook

By Martha Perkins posted 03-26-2019
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Surety bonds guarantee capital, of course; but they also bring with them the expertise of the surety and reputational benefits to the contractors and construction projects that use them. But contractors who benefit from surety bonds should keep in mind they are subject to indemnity agreements that will bite if they fail to fulfill their end of the contract by failing to pay bond premiums and subcontractors or by not completing the project. By entering into a general agreement of indemnity, contractors are placing their cash and real and personal property at risk in the event of a bond default—and even that of their spouse, children, other relatives or business ...
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Maryland individual-surety extender bills fail to advance as legislative session ends

By Mark McCallum posted 04-10-2014
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NASBP scored a major state legislative victory this week, as two bills it opposed failed to pass the Maryland Senate by the conclusion of the legislative session. The bills' failure to advance ended the chances for “an extension of the 2006 law permitting the use of individual surety bonds on state and municipal construction projects,” said Larry LeClair, Director of Government Relations for NASBP. “NASBP wishes good riddance to the 2006 law as it never benefitted small businesses, but instead left them vulnerable to unregulated and unscrupulous individual sureties,” LeClair said. The 2006 law allowed individual sureties to write bonds at the prime contract ...
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Delivering Our Surety Message Through Social Media, SmartBrief & SuretyConnect

By Mark McCallum posted 08-13-2010
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A recurrent theme in my discussions with NASBP members and affiliates is that surety bonding is little understood by many, even by bond obligees and principals. Like other things that may be required of a person or entity, obligees and principals only may understand bonding as a necessary part of the processes they go through to accomplish their ultimate business objectives. They likely know that bonds are required to be furnished by statute or regulation, but they may not understand the importance of bonding from a “big picture” perspective or how it functions in specific situations. They get the bond and then move on to the next pressing business issue. This ...
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New NASBP website offers bonding information for small and emerging contractors

By Kathy Hoffman posted 02-05-2014
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SuretyLearn.org , a new website developed by the National Association of Surety Bond Producers (NASBP), offers an online course and a repository of other valuable information to help small and emerging contractors start the bonding process. NASBP saw a need to provide small contractors with a “head start” by educating them about bonds and how to become bondable, says Joshua Etemadi of Construction Bonds Inc., a division of Murray Securus. Etemadi and other NASBP members developed the curriculum for the online course, titled “Understanding Contract Surety Bonding: An Orientation Course for Small Contractors.” The seven- chapter course begins with an overview ...
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NASBP updates website to help members interact and share knowledge

By Mark McCallum posted 01-07-2015
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NASBP is launching a new version of its website www.nasbp.org to emphasize the opportunities for members to network and share knowledge online. The updated site also makes the most popular resources even easier to locate. "After analyzing comments and suggestions provided by the NASBP membership, the Automation and Technology Committee compiled and prioritized a wish list. The redesigned website includes all of the upgrades and features to not only locate content, but contribute and interact quickly and easily,” said Nick Newton, who is Chair of the Committee and President of the NASBP Member firm of Newton Bonding in Stillwater, MN. One of the main reasons ...
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Individual surety provision is a key focus for NASBP Legislative Fly-in

By Mark McCallum posted 05-28-2014
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The June 11-12, 2014 NASBP Legislative Fly-in will continue the association's emphasis on the accomplishments and contribution of the surety industry, with a particular focus on a bill that could set more stringent requirements for assets backing individual surety bonds. NASBP members are being encouraged to talk to their federal legislators about the importance of surety bonds and how passing House Bill 776, the Security in Bonding Act of 2013, will help the industry. They’re also calling for enhancements to the U.S. Small Business Administration's Surety Bond Guarantee Preferred Program and for lawmakers to include surety bond requirements for public-private ...
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The Public Relations Power Bond Producers Gain by Promoting Financial Literacy

By Mark McCallum posted 08-21-2018
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The Public Relations Power Bond Producers Gain by Promoting Financial Literacy This is the second in a three-part series on how NASBP bond producers are uniquely situated to ensure success and growth for small contractors. There is a vast and unmet need for better financial literacy education in the United States. According to a February 2015 study by the American Psychological Association, 72 percent of Americans said they feel stressed about money “at least some of the time,” 64 percent said money is a “somewhat” or “very significant” source of stress, and 22 percent said they experienced “extreme stress” about money. Stephen Freeman, Vice President, ...
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NASBP Oct. 22 conference will promote executive leadership development

By Kathy Hoffman posted 04-20-2015
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Events today and yesterday at the 2015 NASBP Annual Meeting & Expo in San Diego have revealed several ways in which the Association addresses leadership development of surety professionals. In fact, this fall NASBP is offering a unique conference focusing on executive leadership skills. NASBP's Leadership Conference for Surety Professionals, taking place Oct. 22 in Nashville, is designed to be a valuable new resource to help bond producers and other surety professionals and their companies thrive, NASBP First Vice President Susan Hecker said at the Annual Meeting. The event will focus on executive leadership development, with emerging and established ...
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NASBP touts bonding requirements in public-private partnership laws

By Kathy Hoffman posted 02-25-2015
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NASBP is watching legislation related to public-private partnerships (P3s) in several states and is encouraging requirements for bonding where such provisions remain discretionary or are nonexistent. Such partnerships for public works projects still have the same need for bonding as traditionally delivered projects do, said Shannon Crawford, Manager of State Relations at NASBP. “On traditionally delivered projects, you want to make sure you have the best qualified contractors that have been vetted by the surety, and make sure you have payment for subs, suppliers and materialmen,” Crawford said. “All the reasons you need bonding on a traditionally delivered ...
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