Today, I wanted to discuss the difficulty of obtaining surety bonds for companies with headline or reputational risk. Sometimes, this is overlooked because an attorney takes on a case for a client that is stable and is not aware that traditional surety markets can be rigid about who they do business with.
Reputational and headline risk is often overlooked. These risks apply to companies in certain industries, such as the cannabis industry, crypto industry, a company in the adult entertainment industry, and other industries pose problems, as well.
My office specializes in procuring surety bonds for companies with headline and reputational risk, and has been able to find solutions for these companies. Not all surety brokers are equal. While we do not promote these industries, we do believe that they should have access to the surety bond market.
We work with surety markets that are willing to overlook certain factors which may give other surety companies pause. We try to find practical solutions to streamline the bonding process and give companies access to surety bonds that they would otherwise not be able to obtain. The benefit of a knowledgeable broker is knowing which markets will approve a bond and which will not, and the reason behind it.
We always suggest that you give us a call before making a motion for an injunction, or applying for a license, and having the bond lined up ahead of time, so that there are no surprises. When a bond is required, your client can post it, obtain it, and have it on file immediately.
Neil Pedersen
PEDERSEN & SONS SURETY BOND AGENCY, INC.
15 Maiden Lane Suite #800
New York, NY, 10038
212-227-7277
neil@courtbondnow.com
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