It seems suspect to me that shortly after Obama allows expanded Atlantic Offshore Drilling the Gulf Coast experiences one of the worst rig disasters in over 2 decades.
Also, here a few other points that seem suspect as well:
1. Modern offshore oil rigs have several redundant safety devices to prevent such disasters
2. it was reported there was 2 explosions, the second was large and powerful enough to cause toe rig and platform to MELT into the Gulf
3. the unmanned submarine sent down is unable to find the shutoff valve, required to be in place before pumping can begin to prevent such disasters
4. the safety devices located at the wellhead (5,000 underwater on the Gulf floor) are missing
We have to wait and see what the investigation finds before making any true inferences.
Friday, April 30, 2010
Contractors Bonding Basics
Contractors that bid government jobs are required to obtain Bid/Performance Bonds through a licensed insurance agent. Let's look at what a bond is and why municipalities require a bond.
A surety bond is similar to a bank loan with the surety company acting like a bank. The surety company is agreeing to pay an agreed upon amount in the event of a claim (I will discuss later). If the municipality is requesting a $500,000 bid bond, the contractor has to prove to the surety company that the company can make good on that amount. This is where the surety company needs to qualify the contractor for the ability to repay the amount in the event of a claim. The contractor is responsible for paying back the surety company the claim amount. If a full claim is filed against the bond, the contractor is required to pay back the surety company. It acts like a line of credit for a specific event in exchange for a premium.
Contractors that have poor credit can experience difficulty in obtaining a bond just like obtaining a loan. Two options instead of obtaining a bond are self insuring or collateralizing. Self insuring is what it sounds like. The contractor puts puts up the full amount into an escrow account until the project is completed. Collateralizing is where the surety company requires a portion of the bond amount be remitted in the form of cash held in trust until the end of the project.
Why do municipalities require a bid bond? When a contractor enters into a bidding contract with a municipality, the contractor has stated to the municipality of their good faith intention to win the lowest bid for the project. The contractor maybe among several other contractors bidding for the same project. As required for government projects, the municipally has to allow several bids to compete, all of which are under contractual obligation to submit their best pricing. This can create a financial hardship for the municipality and all other bidding contractors if one or more of the contractors withdraw their intentions before the award is finalized. This creates a claim.
The municipality can then file a claim against the withdrawn contractors bond for any amount up to the full bond amount.
The need of the bond is cover any financial hardship realized by the municipality or any of the other bidding contractors.
Big Boy Toy Insurance has secured relationships with several of the nations best and largest bond issuers regardless of current credit standing. We have been successful in obtaining high risk bonds for a few of our local contractors with great turn around and service. For our low risk contractors, we are glad to have the ability to place those risks with either HCC Surety or CNS Surety. CNA is one of the industry's largest and best rated issuers offering highly competitive premiums for all classifications of contractors.
We also have the means to issue aggregate bond limits making future bond issue fast and painless.
Please contact us for more information or apply over the phone for your Surety Bond pre approval.
A surety bond is similar to a bank loan with the surety company acting like a bank. The surety company is agreeing to pay an agreed upon amount in the event of a claim (I will discuss later). If the municipality is requesting a $500,000 bid bond, the contractor has to prove to the surety company that the company can make good on that amount. This is where the surety company needs to qualify the contractor for the ability to repay the amount in the event of a claim. The contractor is responsible for paying back the surety company the claim amount. If a full claim is filed against the bond, the contractor is required to pay back the surety company. It acts like a line of credit for a specific event in exchange for a premium.
Contractors that have poor credit can experience difficulty in obtaining a bond just like obtaining a loan. Two options instead of obtaining a bond are self insuring or collateralizing. Self insuring is what it sounds like. The contractor puts puts up the full amount into an escrow account until the project is completed. Collateralizing is where the surety company requires a portion of the bond amount be remitted in the form of cash held in trust until the end of the project.
Why do municipalities require a bid bond? When a contractor enters into a bidding contract with a municipality, the contractor has stated to the municipality of their good faith intention to win the lowest bid for the project. The contractor maybe among several other contractors bidding for the same project. As required for government projects, the municipally has to allow several bids to compete, all of which are under contractual obligation to submit their best pricing. This can create a financial hardship for the municipality and all other bidding contractors if one or more of the contractors withdraw their intentions before the award is finalized. This creates a claim.
The municipality can then file a claim against the withdrawn contractors bond for any amount up to the full bond amount.
The need of the bond is cover any financial hardship realized by the municipality or any of the other bidding contractors.
Big Boy Toy Insurance has secured relationships with several of the nations best and largest bond issuers regardless of current credit standing. We have been successful in obtaining high risk bonds for a few of our local contractors with great turn around and service. For our low risk contractors, we are glad to have the ability to place those risks with either HCC Surety or CNS Surety. CNA is one of the industry's largest and best rated issuers offering highly competitive premiums for all classifications of contractors.
We also have the means to issue aggregate bond limits making future bond issue fast and painless.
Please contact us for more information or apply over the phone for your Surety Bond pre approval.
Friday, January 29, 2010
General Contractors that Grind My Gears
GRIND MY GEARS
A new day and here we are again. How about that stimulus package? Have you felt it yet? I have not nor have Millions of out of work people. How about those people that had jobs but lost them? Are they back to work? I think not. Did they get there jobs back? No? So, how has this package helped the common man? It has not. Well than, who has it helped, BIG Business? Yes, that right the big contractor that is large enough to get the job. The little contractor same licenses same experience can’t do it, why capital. The little contractor who had the capital no longer has it in an attempt to keep alive. And what about the big contractor who is still holding on to the small guys money?
I am not talking out of my head when I say this. I know from experience that it is true. I did a job for a very large contractor for a large municipality in Arizona and I got screwed out of a $250,000 dollars on a project that my company did all the work. The General Contractor basically watched me as I completed the project. But, as it would be, I signed in the change order the GC submitted to the city, the GC received payment from the city, and lo and behold, withheld my payment. My only recourse was to attain an attorney and rack up the attorney fees. You all know who gets rich. Now, they have my money so they can afford their attorney where I am left fending for myself, go figure. Here comes the real gripe.
The city has a clause in there contract that says before the release of the money (90% mine), the GC has to get me to sign off that I have been paid. Did this happen? No, it did not. The GC received my money and the city said they can’t help. The city did not get a release from us in any way or form and of course in Arizona you can’t lien a landfill site. So where does that put the little guy? Bankrupt and the big boy continues to gets work from the city spending the Governments stimulus money that is supposed to help Middle America. Why am I not surprised? Well, if I was a minority (oh by the way, the big contractor is), I would have gotten paid. Well I did not get paid and the city, after 2 years of trying to fight this I am out of money and thanks to this contractor, broke. My family will soon be homeless. Thanks to the Government and the ability to change the rules as they see fit.
A new day and here we are again. How about that stimulus package? Have you felt it yet? I have not nor have Millions of out of work people. How about those people that had jobs but lost them? Are they back to work? I think not. Did they get there jobs back? No? So, how has this package helped the common man? It has not. Well than, who has it helped, BIG Business? Yes, that right the big contractor that is large enough to get the job. The little contractor same licenses same experience can’t do it, why capital. The little contractor who had the capital no longer has it in an attempt to keep alive. And what about the big contractor who is still holding on to the small guys money?
I am not talking out of my head when I say this. I know from experience that it is true. I did a job for a very large contractor for a large municipality in Arizona and I got screwed out of a $250,000 dollars on a project that my company did all the work. The General Contractor basically watched me as I completed the project. But, as it would be, I signed in the change order the GC submitted to the city, the GC received payment from the city, and lo and behold, withheld my payment. My only recourse was to attain an attorney and rack up the attorney fees. You all know who gets rich. Now, they have my money so they can afford their attorney where I am left fending for myself, go figure. Here comes the real gripe.
The city has a clause in there contract that says before the release of the money (90% mine), the GC has to get me to sign off that I have been paid. Did this happen? No, it did not. The GC received my money and the city said they can’t help. The city did not get a release from us in any way or form and of course in Arizona you can’t lien a landfill site. So where does that put the little guy? Bankrupt and the big boy continues to gets work from the city spending the Governments stimulus money that is supposed to help Middle America. Why am I not surprised? Well, if I was a minority (oh by the way, the big contractor is), I would have gotten paid. Well I did not get paid and the city, after 2 years of trying to fight this I am out of money and thanks to this contractor, broke. My family will soon be homeless. Thanks to the Government and the ability to change the rules as they see fit.
Wednesday, January 27, 2010
Is your Insurance Agent Really Working Hard?
How do you know your insurance agent is really working hard placing your insurance needs with the best available carrier? Do you get multiple quotes to select from? Is your agent reviewing three, five, seven insurance quotes with you? Are you able to select the insurance company you want?
We have an agency policy to review ALL insurance quotes we receive for ALL of our prospective and current clients. We feel, you, the insured, have the right to know what we have done on your behalf. When we complete an application, we notify you that it will take several days before we have ALL of your quotes to review with you. In that time period, we have submitted your application to no fewer than 3 insurance carriers using that many additional supplemental applications. It takes a lot more time than a captive agent, such as Allstate, State Farm and Farmers, to gather the needed data, collect that data on the application, scan it to your new electronic file and email it off to the three or more carriers. We then wait for the replies from the carrier underwriters for additional information or a quote.......read more
Please feel free to contact us with questions or assistance at info@bbtimail.com.
Also, please leave your thoughts of this or other articles in the COMMENT section so we know what information is helpful and what is useless.
We have an agency policy to review ALL insurance quotes we receive for ALL of our prospective and current clients. We feel, you, the insured, have the right to know what we have done on your behalf. When we complete an application, we notify you that it will take several days before we have ALL of your quotes to review with you. In that time period, we have submitted your application to no fewer than 3 insurance carriers using that many additional supplemental applications. It takes a lot more time than a captive agent, such as Allstate, State Farm and Farmers, to gather the needed data, collect that data on the application, scan it to your new electronic file and email it off to the three or more carriers. We then wait for the replies from the carrier underwriters for additional information or a quote.......read more
Please feel free to contact us with questions or assistance at info@bbtimail.com.
Also, please leave your thoughts of this or other articles in the COMMENT section so we know what information is helpful and what is useless.
Specialty Toy Insurance is NOT Auto Insurance
To begin, let’s look at types of insurable “toys”: Motorcycles, Boats, Recreational Vehicles, Dune Buggies and Sandrails, All Terrain Vehicles, Side-By-Side Utility Vehicles, Modified Golf Carts, Golf Carts, Snowmobiles, Collector Vehicles, Travel Trailers and Personal Watercraft.
Why do all of these vehicle types need their own individual insurance coverage? Any vehicle issued a state registration needs to be properly insured. All 50 states have adopted the required minimum liability insurance requirements. In Arizona, the minimum liability limits are 15/30/10. Insurance is not designed to have one policy meet all vehicle needs. If you need a screwdriver you do not buy a hammer. Vehicle insurance is no different. A motorcycle policy is not designed to cover the insurance needs of a boat. ..............read more
Please feel free to contact us at info@bbtimail.com for any further questions or assistance.
Why do all of these vehicle types need their own individual insurance coverage? Any vehicle issued a state registration needs to be properly insured. All 50 states have adopted the required minimum liability insurance requirements. In Arizona, the minimum liability limits are 15/30/10. Insurance is not designed to have one policy meet all vehicle needs. If you need a screwdriver you do not buy a hammer. Vehicle insurance is no different. A motorcycle policy is not designed to cover the insurance needs of a boat. ..............read more
Please feel free to contact us at info@bbtimail.com for any further questions or assistance.
Press Release-Big Boy Toy Insurance gets CNA Surety Appointment
Big Boy Toy Insurance, LLC is proud to announce its recent appointment with CNA Surety and Western Surety. This appointment offers BBTI a new and highly competitive surety bond market for contractor’s performance and bid bonds, license bonds and tax bonds.
CNA Surety, through it’s partnership with Western Surety, is a market leader in the bond market around the world. CNA’s A.M. Best financial strength rating is ‘A+’, the highest possible rating, demonstrating their commitment to the surety market and their agency ....read more
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CNA Surety, through it’s partnership with Western Surety, is a market leader in the bond market around the world. CNA’s A.M. Best financial strength rating is ‘A+’, the highest possible rating, demonstrating their commitment to the surety market and their agency ....read more
We encourage all visitors to leave a comment and subscribe to our RSS Feeds.
Friday, January 22, 2010
U.S. Auto Insurance Companies do not extend coverage into Mexico. The only exception is physical damage (comprehensive and collision) coverage within 15-50 miles of the border, depending on the specific carrier. Your U.S. State issued liability auto insurance coverage stops at the Mexican border because of one reason. Mexico operates under Constitutional Law as opposed to Precedent Law in the United States...
...Word of advise, when traveling south of the border with a vehicle, get Online Mexican Travel Insurance from one of several well established carriers. Most of the Online Mexican Travel Insurance brokers offer the same carriers such as GNP (oldest), ACE, and GE and everything you need to quote, bind and issue coverage is readily available on the website.
Please read the full article at any of the following online publishers: Ezines, Amazines, GoArticles, Article Base, Insurance Articles.
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