Surety underwriting is the process of determining if a business qualifies for coverage. First, a surety underwriter identifies and evaluates the bonding risks at stake. As such, surety underwriters have the power to approve or reject an application based on their findings of the risks involved. To determine the level of potential risks, they;
Assess the actual obligation
Weigh the agreement, rules, and regulations on the bond form
Examine the contractor's capacity to deliver on the obligations