How is the GPP bond underwritten?
A company’s financial strength and their exposure to business risks are considered in the underwriting process. Underwriters look for tangible net worth coupled with sustainable cash flow. Risk is assessed based on an applicant’s business risk, size and how well this risk is mitigated through the use of insurance. Q: How long will the process take? A: The application process should take less than thirty days provided that a complete application kit is provided at the onset. TIA Services will act as liaison to ensure support throughout. Q: How is proof of coverage for the GPP excess bond provided? A: The broker will receive an Acord™ 25 Certificate of Liability Insurance that will provide the bond number, effective date and amount of the bond. The broker will also receive a Certificate of Participation from Avalon Risk Management containing similar information as proof of the higher bond amount. As recommended by the TIA and legal counsel, there will be no listing of shippers or carrier
