FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

The Surety & Fidelity Association of America Foundation Awards 17 Students with $5,000 Scholarships
The Surety and Fidelity Intern and Scholarship Program creates new pathways for
underrepresented college students to enter the surety and fidelity industry.

September 14, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America Foundation (SFAA Foundation) announced today the 17 students who have been selected as recipients of a $5,000 scholarship as part of the Surety and Fidelity Intern and Scholarship Program for 2021. The program was created in 2003 to help increase diversity within the surety and fidelity industry by attracting underrepresented students into the field. These students are defined as African American, Native American, Alaskan, Asian/Pacific Islander, Hispanic, female, LGBTQ+, veteran or disabled. Each scholarship recipient will receive a $5,000 academic award.

“The 17 scholarship recipients stood out in their level of professionalism as interns and academic accomplishment ,” said Tim Mikolajewski, chair of The Surety & Fidelity Association of America Foundation and president, global surety for Liberty Mutual Surety. “The Foundation’s Board of Trustees is thrilled to award each student with a $5,000 scholarship and we hope that they continue to pursue surety and fidelity as a career option once they have graduated.”

 
“These 17 students are the future of the surety and fidelity industry and on behalf of SFAA, I would like to congratulate them on their academic and professional achievements,” said Lee Covington, president and CEO of SFAA. “This is the largest number of scholarships awarded in the history of the program and we are grateful to our member companies and individuals whose donations to the SFAA Foundation make this program possible.”

The 2021 Surety and Fidelity Intern and Scholarship Program scholarship recipients are as follows:

• Izan Ahmed, Grinnell College, School of Computer Science – Merchants Bonding Company
• Matthew Belter, University of Colorado Boulder, Leeds School of Business - Travelers Bond and Specialty Insurance
• Sneha Bharadwaj, University of Washington, Michael G. Foster School of Business - Travelers Bond and Specialty Insurance
• Hannah D’Sylva, University of San Diego, School of Business - Liberty Mutual Surety
• Camera Elliott, University of Richmond, Robins School of Business – IAT Insurance Group – Surety
• Christian Jackson, Drake University, College of Business and Public Administration – Merchants Bonding Company
  
• Sofia Melhor, Temple University, Fox School of Business – Travelers Bond and Specialty Insurance
  
• Leah Monroe, Ohio State University, Fisher College of Business - Travelers Bond and Specialty Insurance
  
• Jaylynn Muniz, University of Hartford, Barney School of Business - Travelers Bond and Specialty Insurance
  
• Lily Neff, University of San Diego, School of Business - Liberty Mutual Surety
  
• Gracie Ray, Middle Tennessee State University, Jennings A. Jones College of Business - Sompo International
  
• Richard Sakyi, Virginia Commonwealth University, School of Business - Travelers Bond and Specialty Insurance
  
• Winnie Shin, Boston University, Questrom School of Business - IAT Insurance Group – Surety
  
• Hanna Spencer, University of Alabama at Birmingham, Collat School of Business – Travelers Bond and Specialty Insurance
  
• Alberto Stadhagen, St. Mary’s University, Greehey School of Busine ss – Merchants Bonding Company
  
• Alexa Summers, Temple University, Fox School of Business - The Hartford
  
• Aleah Vaske, University of Northern Iowa, College of Business – Merchants Bonding Company

For information on the Surety and Fidelity Intern and Scholarship Program, please visit www.surety.org.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

Supreme Court of Washington State Upholds SFAA Position on Spearin Doctrine
Defective Design Upheld as a Defense Even if Contractor is Partially at Fault

September 9, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) commends the decision of The Supreme Court of The State of Washington to reverse the lower court ruling in the case of Lake Hills Investments, LLC vs. Rushforth Construction Co. As argued by SFAA, the Supreme Court found the contractor should not be responsible for damage caused by the defective design provided by the owner even where the contractor was responsible for certain defective work. In addition, the contractor is not completely barred from asserting this defense if the defects were caused by a combination of deficient performance by the contractor and deficient design, and proportional liability should be determined.

The SFAA, along with the National Electrical Contractors Association Puget Sound Chapter (NECA), Mechanical Contractors Association of Western Washington (MCAWW) and SMACNA-Western Washington (SMACNA), issued an Amici Curiae in support of Petitioner AP Rushforth Construction Co., Inc. d/b/a AP Rushforth, and Adolfson & Peterson, Inc.’s (collectively “AP”) Petition for Discretionary Review. In the brief they argued the Court should grant the Petition because the decision by the lower court is contrary to precedent of limiting a contractor’s liability when the owner’s defective plans and specifications caused the defective work, and upsets settled expectations of allocation of risk and liability between contractors, owners and architects (among others) on construction projects. This allocation of risk and the principle of limiting the contractor’s liability for defective work based on defective plans and specifications is long settled doctrine in Washington State and throughout the country, a doctrine based on the US Supreme Court’s landmark decision in U.S. vs. Spearin more than 100 years ago.

“I am extremely pleased that we were able to work with our construction industry partners in support of their efforts demonstrating to the courts why it was appropriate to leave this well-established allocation of risk unchanged,” said Julie Alleyne, vice president, policy and general counsel of the Surety & Fidelity Association of America. “The court’s decision is a commonsense solution – each party is responsible for its own mistakes."

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

SFAA Commends U.S. Senate for Historic Bipartisan Infrastructure Bill
Surety bonding industry stands ready to support and protect this critical investment.

August 10, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) commends the U.S. Senate for passing the historic, bipartisan Infrastructure Investment and Jobs Act. The $1.2 trillion deal will lay the foundation for extensive improvements in the nation’s roadways, bridges, railways, waterways and broadband access.

“Investing in infrastructure will create millions of jobs across the country, growing our national and local economies in both the short and long term,” said SFAA president and CEO, Lee Covington. “The surety industry fully supports this investment and will continue to provide the essential protections necessary to support our country’s infrastructure needs through our suite of products and services.” 

SFAA also commends the inclusion of the Van Hollen 2354 amendment to the bill, accepted by a unanimous vote of 97-0. The amendment requires payment and performance bonds on all federally-financed infrastructure projects receiving loans and grants under the Transportation Infrastructure Finance and Innovation Act (TIFIA), protecting taxpayers’ dollars, ensuring project completion, protecting local small business contractors and workers, and promoting economic growth.

Senator Van Hollen (D-MD) in a statement said, “Contractor defaults on infrastructure projects can cause costly delays, wasting taxpayer dollars and leaving residents, local stakeholders, and project workers in the lurch. As we work to make historic investments in our nation’s transportation network, we must ensure that projects are financed securely. I’m glad the Senate overwhelmingly passed this bipartisan, common-sense improvement to our nation’s infrastructure financing.”

“An investment of this size needs to be protected. For over a hundred years, the federal government has recognized the importance of payment and performance bonds and the vital assurance bonding provides,” continued Covington. “The surety industry stands ready to support and protect the critical infrastructure improvements that will take place across the nation under this historic legislation.” 

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

FOR IMMEDIATE RELEASE

SFAA Contact: Peter Roth, Vice President – Strategic Communications, Marketing & Research        
Phone: (703) 401-0676 | E-mail: proth@surety.org
NASBP Contact: Kathy Hoffman, Director of Communications
Phone: (240) 200-1278 | E-mail: khoffman@nasbp.org

APCIA Contact: Jeffrey Brewer, Vice President Public Affairs
Phone: (847) 533-3763 | E-mail: Jeffrey.Brewer@apci.org 

Senate Approves Surety Bond Amendment with 97-0 Vote, Ensuring Essential Payment & Performance Protections on all TIFIA-Financed Infrastructure Projects

August 4, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA), the National Association of Surety Bond Producers (NASBP) and the American Property Casualty Insurance Association (APCIA) commend the Senate for passing the Van Hollen 2354 amendment with a unanimous vote of 97-0. The bipartisan amendment, co-sponsored by Senators Chris Van Hollen (D-MD), Mike Rounds (R-SD), Mark Kelly (D-AZ), and Joni Ernst (R-IA), provides essential protections for taxpayers, workers, subcontractors and suppliers by requiring payment and performance security on all federally-financed infrastructure projects receiving loans and grants under the Transportation Infrastructure Finance and Innovation Act (TIFIA), including public-private projects (P3s).

“This 97-0 vote represents a truly bipartisan effort to provide essential protections and services necessary to support our country’s immediate and future infrastructure needs,” said SFAA president and CEO, Lee Covington. “It demonstrates the value and importance construction surety bonds play in the success of all federally-financed infrastructure projects.”

“Assuring the delivery of much-needed, quality infrastructure is what this bipartisan amendment will accomplish,” related NASBP chief executive officer Mark McCallum. “There simply is no substitute for the security that performance and payment bonds bring to construction projects of all types, especially those financed in whole or in part with federal dollars, and the Senate is to be congratulated for its unanimous vote to imbue these protections in the infrastructure package,” added McCallum.

“This provision will ensure those projects that receive federal financing are adequately protected as Congress prepares to send critical infrastructure project dollars to every state. Furthermore, this common-sense provision protects taxpayer resources, small businesses, and workers engaged in these large and complex projects,” said Nat Wienecke, senior vice president for Federal Government Relations and Political Engagement for APCIA.

The Senate is scheduled to vote on the final bipartisan infrastructure deal later this week or early next week.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

Founded in 1942, the National Association of Surety Bond Producers (NASBP) is the association of and resource for surety bond producers and allied professionals. NASBP members specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds. www.nasbp.org

The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions—protecting families, communities, and businesses in the U.S. and across the globe. https://www.apci.org/

FOR IMMEDIATE RELEASE

SFAA Contact: Peter Roth, Vice President – Strategic Communications, Marketing & Research        
Phone: (703) 401-0676 | E-mail: proth@surety.org
NASBP Contact: Kathy Hoffman, Director of Communications
Phone: (240) 200-1278 | E-mail: khoffman@nasbp.org

SFAA and NASBP Commend Congress for Including Essential Surety Bonding Protections on All TIFIA-Funded Infrastructure Projects
INVEST Act Guarantees Payment and Performance
Protections for Taxpayers, Workers, Small Businesses, Subcontractors and Suppliers

July 1, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP) commend Congress for adopting H.R. 1641, “Promoting Infrastructure by Protecting our Subcontractors and Taxpayers Act” into the expanded version of H.R. 3684, “Investing in a New Vision for the Environment and Surface Transportation (INVEST) in America Act.“ The INVEST Act, passed by the House today, reauthorizes highway, transit, and rail programs for fiscal years 2022 through 2026, allocating $547 billion for surface transportation programs over five years with a focus on investments in roads, bridges, transit, and water infrastructure.

During floor consideration of H.R. 3684, the House of Representatives accepted an amendment offered by Rep. Stephen Lynch (D-MA), Rep. Troy Balderson (R-OH), Rep. Chris Pappas (D-NH), and Rep. Jake Auchincloss (D-MA) clarifying payment and performance bonding protection requirements on federally-financed infrastructure projects. The bipartisan amendment provides essential protections for taxpayers, workers, subcontractors, including many small and minority owned businesses, and suppliers by requiring payment and performance bonds on all federally-financed infrastructure projects receiving loans and grants under the Transportation Infrastructure Finance and Innovation Act (TIFIA), including public-private projects (P3s).

“We commend the House for recognizing the essential role construction surety bonds play in the success of all federally-financed infrastructure projects,” said SFAA president and CEO, Lee Covington. “SFAA and NASBP encourage Congress to continue to work together on this important bill and other bi-partisan infrastructure proposals and we will continue to work with both parties and the Biden administration to advance essential investments in our country’s infrastructure,” continued Covington.

“We are realizing the importance and preciousness of investment in the Nation’s infrastructure and the potential such investment has for bolstering our economy and for jobs creation,” related NASBP Chief Executive Officer Mark McCallum. “Lawmakers rightly recognized that such investment deserves and requires that it be protected and its purposes be fulfilled, and requiring the presence of performance and payment bonds on federally-financed infrastructure work gives that vital assurance and shows capable leadership,” continued McCallum.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

Founded in 1942, the National Association of Surety Bond Producers (NASBP) is the association of and resource for surety bond producers and allied professionals. NASBP members specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds. www.nasbp.org

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

Broad Coalition Encourages Lawmakers to Include Amendment Providing Essential Protections on All Federally Financed Projects Receiving TIFIA Funds
Adopting Amendment Lynch 45 Will Ensure Payment and Performance Protections for Taxpayers, Workers, Subcontractors and Suppliers

June 8, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) in collaboration with the National Association of Minority Contractors, the American Subcontractors Association, the American Property Casualty Insurance Association, National Association of Surety Bond Producers, and many other trade associations strongly encourage members of the House Committee on Transportation and Infrastructure, led by Chairman Peter A. DeFazio (D-OR) and Ranking Member Sam Graves (R-MO), to adopt Amendment Lynch 45, a provision articulated in H.R. 1641, “Promoting Infrastructure by Protecting Our Subcontractors and Taxpayers Act.” This bipartisan amendment provides essential protections for workers, contractors, and suppliers by requiring payment and performance protection on federally financed infrastructure projects receiving Transportation Infrastructure Finance and Innovation Act (TIFIA) loans, including public-private projects (P3s). Amendment Lynch 45 is co-sponsored by Congressman Anthony Brown (D-MD), Congressman Chris Pappas (D-NH), Congressman Jake Auchincloss (D-MA), Congressman Stephen Cohen (D-TN), Congressman Stephen Lynch (D-MA), and Congressman Troy Balderson (R-OH).

“Amendment Lynch 45 will ensure TIFIA-financed P3 projects will protect taxpayers’ dollars, ensure project completion, protect local small business contractors and workers, and promote economic growth,” said SFAA president and CEO, Lee Covington. “For nearly a hundred years, the federal government has recognized the importance of surety bond requirements. Over 95 percent of all public projects require bonding under the Miller Acts, however, the Miller Acts’ bonding requirements are not clear on P3s, therefore, putting those projects at risk,” continued Covington.

P3 projects have increased in popularity over the years, however the lack of clarity for requiring payment and performance protections on P3 projects can force taxpayers to absorb additional costs of rebidding a project. Subcontractors and workers are often left unpaid for extended periods of time if the contractor defaults. By ensuring a bond requirement, P3 projects will offer the same payment and performance protections that have been in place on public infrastructure projects, protecting workers, contractors, suppliers, and taxpayers.

A list of co-sponsors organizations and additional information can be found here.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

FOR IMMEDIATE RELEASE

SFAA Contact: Peter Roth, Vice President – Strategic Communications, Marketing & Research        
Phone: (703) 401-0676 | E-mail: proth@surety.org
NASBP Contact: Kathy Hoffman, Director of Communications
Phone: (240) 200-1278 | E-mail: khoffman@nasbp.org

SFAA & NASBP Issue Revised Electronic Bonding Guidelines
Best practices for project owners and procurement agencies at all levels of government

May 19, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP), the surety industry’s leading trade associations, jointly issued revised guidelines on electronic surety bonding and digital signature best practices for bond obligees and public officials seeking to improve procurement processes.    

“Demand for more digitized workflows has accelerated the surety industry’s transition to electronic bonding,” stated Lee Covington, SFAA President and CEO. “Public agencies need to move away from exclusively requiring hardcopies of bonds with wet-ink signatures and impressed seals and adopt new technologies allowing for a more efficient electronic bonding process. The COVID-19 pandemic reinforced the urgency and immediate need to move to ebonding,” added Covington.

“NASBP and SFAA have made it a priority to urge federal, state, and local officials to accept the electronic execution and delivery of surety bonds for construction contracts and for other commercial purposes,” stated Mark McCallum, NASBP CEO. “We know bond obligees and public officials are looking toward the surety industry for guidance, as they seek to move from paper to paperless environments. These jointly drafted electronic bonding guidelines provide needed guidance from the surety industry to decision-makers as they contemplate that transition,” related McCallum.

The goal of the Guidelines is to ensure bond stakeholders reap the benefits of streamlined processes, reduced redundancies, and increased productivity. The newly updated Guidelines contemplate the elements necessary for enforceable contracts and remain mindful of protecting the integrity of bond transactions as those transactions move from physical to electronic environments.

Surety bonds remain a critical component of and necessary protection for public procurements, and bond obligees should include the acceptance of electronic bonds in their plans for procurement modernization. NASBP and SFAA will continue to monitor advances in electronic bonding activities and to issue helpful, practical guidance to assist with such modernization efforts.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

Founded in 1942, the National Association of Surety Bond Producers (NASBP) is the association of and resource for surety bond producers and allied professionals. NASBP members specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds. www.nasbp.org

FOR IMMEDIATE RELEASE

SFAA Contact: Peter Roth, Vice President – Strategic Communications, Marketing & Research        
Phone: (703) 401-0676 | E-mail: proth@surety.org
NASBP Contact: Kathy Hoffman, Director of Communications
Phone: (240) 200-1278 | E-mail: khoffman@nasbp.org

NASBP & SFAA Strongly Support Miller Act Indexing Exemption
Without Exemption, Thousands of Workers and Subcontractors Will Be Put at Risk

May 4, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP) commend Chairwoman Nydia Velazquez (D-NY) and Congressman Byron Donalds (R-FL) for the introduction of H.R. 2949. This legislation will ensure essential payment protections for subcontractors, suppliers, and workers and ensure performance protections for taxpayers will remain in place on federal construction contracts of $150,000 and more. The bill will exempt the Miller Act bond threshold from periodic and arbitrary increases currently required under a broad indexing law.

“Bonding federal infrastructure protects taxpayers’ dollars, ensures project completion, protects local small businesses and workers, and promotes economic growth,” said Lee Covington, president and CEO of the SFAA. “The Miller Act provides essential remedial protections for many small businesses which furnish labor and materials on public work. If the bond threshold is raised, thousands of federal projects will no longer be protected by payment and performance bonds, leaving downstream parties exposed to significant risk of nonpayment if the contractor fails to pay them or goes out of business,” continued Covington.

If the federal bond threshold increases from $150,000 to $200,000, the result is an estimated 1,700 unbonded federal contracts annually worth approximately $300M worth of taxpayer dollars potentially exposed to unprotected loss. It is for these policy reasons that NASBP, SFAA, and the 16 association members of the Construction Industry Procurement Coalition strongly support H.R. 2949.

“Congress recognized that certain protections should not be subject to periodic inflationary adjustments as required under Title 41, and this same statutory exclusion should also apply to the essential protections of the Miller Act,” stated Mark McCallum, NASBP CEO. “It’s important to understand the only protection certain subcontractors and suppliers have on federal construction contracts are payment bonds, since no liens can be placed on public property, and periodic increases to the Miller Act threshold will subject more subcontractors and suppliers to risk of non-payment, which can cause dire if not catastrophic impacts to their businesses,” stressed McCallum.

For over 80 years, the federal Miller Act has protected taxpayers against risk of loss by requiring payment and performance bonds on federal construction contracts. NASBP and SFAA look forward to working with Congress, on a bipartisan basis, for the passage of this essential bill.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

Founded in 1942, the National Association of Surety Bond Producers (NASBP) is the association of and resource for surety bond producers and allied professionals. NASBP members specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds. www.nasbp.org

FOR IMMEDIATE RELEASE

SFAA Contact: Peter Roth, Vice President – Strategic Communications, Marketing & Research        
Phone: (703) 401-0676 | E-mail: proth@surety.org
NASBP Contact: Kathy Hoffman, Director of Communications
Phone: (240) 200-1278 | E-mail: khoffman@nasbp.org

SFAA and NASBP to Hold Virtual Joint Legislative "Fly-In"
Surety Industry to Advocate on Capitol Hill for Legislative Priorities

March 25, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP) will hold their first-ever Virtual Joint Legislative “Fly-In” on Thursday, March 25, 2021. The SFAA and NASBP Joint Legislative Fly-In will enable surety professionals from across the country to educate members of Congress and staff about the value of construction surety bonds and advocate for their legislative priorities.

“The virtual meetings will allow our members to show their strong support for new legislation introduced by Senator Chris Van Hollen (D-MD), Senator Mike Rounds (R-SD), Congressman Stephen Lynch (D-MA) and Congressman Troy Balderson (R-OH) to clarify the bonding requirements under the Transportation Infrastructure Finance and Innovation Act (TIFIA), as well as legislation continuing bonding protections at current levels for federal projects,” said Dalton DeFendis, Director of Federal Affairs for SFAA.

Larry LeClair, Director of Government Relations of NASBP added, “With delivering an infrastructure package a key legislative goal of the new White House and of Congress, having surety professionals explain the critical role surety bonding requirements play in protecting federal funding resources and in delivering quality construction of infrastructure projects has never been more timely or important.” LeClair emphasized, “The virtual fly-in will connect congressional offices with subject matter experts on surety to help them make key policy decisions as they formulate legislative solutions to address the need for transportation, broadband, and other types of infrastructure.”

In over 150 meetings on Capitol Hill, construction bonding experts will meet with policy makers and their staff to educate them on the significant role surety bonds play in advancing public infrastructure projects. These vital protections on construction projects for public entities include: protecting taxpayers’ dollars, ensuring project completion, protecting local small business contractors and workers, and promoting economic growth.

Additional information on the 2021 SFAA and NASBP Virtual Joint Legislative Fly-In can be found here.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

Founded in 1942, the National Association of Surety Bond Producers (NASBP) is the association of and resource for surety bond producers and allied professionals. NASBP members specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds. www.nasbp.org

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

SFAA Strongly Supports Bill Providing Essential Protections on All Federally Financed Projects Receiving TIFIA Funds
The Bill Will Ensure Payment and Performance Protections for Taxpayers, Workers and Subcontractors

March 10, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) commends Senator Chris Van Hollen (D-MD), Senator Mike Rounds (R-SD), Congressman Stephen Lynch (D-MA) and Congressman Troy Balderson (R-OH) for the introduction of the “Promoting Infrastructure by Protecting Our Subcontractors and Taxpayers Act.” This legislation provides essential protections for workers, suppliers and contractors by requiring payment protection on federally financed infrastructure projects receiving Transportation Infrastructure Finance and Innovation Act (TIFIA) loans, including public-private projects (P3s).

“Bonding TIFIA-financed P3 projects will protect taxpayers’ dollars, ensure project completion, protect local small business contractors and workers, and promote economic growth,” said Lee Covington, president and CEO of the Surety and Fidelity Association of America. “TIFIA should be modernized to include the same payment and performance requirements that protect all other federally funded infrastructure projects.”

P3 projects have increased in popularity over the years, however the lack of clarity for requiring payment and performance protections on P3 projects can force taxpayers to absorb additional costs of rebidding a project, and subcontractors and workers are often left unpaid for extended periods of time if the contractor defaults. By ensuring a bond requirement, P3 projects will offer the same payment and performance protections that have been in place on public infrastructure projects, protecting our nation’s construction industry and taxpayers alike.

“Construction is a risky business, and for over 80 years, the federal and state Miller Acts have protected against the risk of loss by requiring payment and performance bonds,” continued Covington. “SFAA looks forward to working with Congress, on a bipartisan basis, for the passage of this essential bill.”

A list of supportive organizations and additional information can be found here.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

SFAA Joins The Institutes RiskStream Collaborative Working Group
Groups' Goal is to Streamline Surety Bonds Power of Attorney Verification Process

February 4, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) has joined a newly-formed blockchain working group created by The Institutes RiskStream Collaborative™, the risk management and insurance industry’s largest enterprise-level blockchain consortium. The working group, focused on streamlining the power of attorney registration and verification process within the surety industry, is scheduled to launch its first meeting this month.

“We are looking forward to participating in the RiskStream Collaborative Working Group, the goal of which is leveraging blockchain technology to improve the process of registering, maintaining and verifying powers of attorneys,” said Lee Covington, president and CEO of SFAA. “Having a seat at the table will ensure our members are able to contribute to this important effort to explore the potential to streamline business processes in our industry globally and here in the United States.”

“We’re excited that SFAA has joined the working group to build out a solution for power of attorney registration and verification,” said Christopher McDaniel, president of The Institutes RiskStream Collaborative. “We feel that amount of use cases for blockchain and distributed ledger technology within the surety bond sector are limitless, so the power of attorney working group is likely just the beginning.”

The RiskStream Collaborative Working Group, of approximately 200+ participants, includes other trade associations and member companies from the surety and reinsurance industry, system vendors and RiskStream members.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

About The Institutes RiskStream Collaborative The Institutes RiskStream Collaborative™ is the risk management and insurance industry’s first enterprise-level blockchain consortium that brings together experts and developers to advance insurance-specific use cases via Canopy, a custom blockchain architecture. The RiskStream Collaborative is committed to equipping organizations to work together to inspire product innovation, enable efficiencies, and open new technological frontiers.

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

SFAA Congratulates Secretary Buttigieg on Senate Confirmation ─
Reiterates Infrastructure is the Best Investment Congress Can Make

February 2, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) commends the U.S. Senate for its swift confirmation of former Mayor Pete Buttigieg as Transportation Secretary and looks forward to working with Secretary Buttigieg on important infrastructure policies as he assumes his role.

“SFAA strongly supports Secretary Buttigieg’s belief that the U.S. has a generational opportunity to transform and improve its infrastructure,” said Lee Covington, president and CEO of SFAA. “We have an urgent need to invest in our nation’s public works projects, both in the immediate and long term. Making the investment in infrastructure now will pay returns for generations and is the best investment Congress can make to ensure a strong economic recovery from the impacts of COVID-19.”

SFAA, in partnership with S&P Global, published a fact sheet highlighting how infrastructure can fuel the economy and put America back to work. S&P Global estimates that a $2.1 trillion infrastructure investment would result in a $5.7 trillion boost in overall economic activity in the U.S. over a 10-year period. Their study also estimates the $2.1 trillion investment would add over 2.3 million jobs by 2024.

“Action must be taken immediately, and a strong bi-partisan consensus is vital,” said Covington. “This level of infrastructure investment would put thousands of high priority green-lighted projects back on-line, employing millions of Americans across the country. GDP would increase by $3.15 trillion and the benefits would be felt for decades to come. We are confident in Secretary Buttigieg and the entire administration’s infrastructure vision for the country.”

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience.

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

SFAA’s Support of FAR Case 2017-003 Amendment Garners Results
New Rule Strengthens Protections of Federal Taxpayer Revenues

January 20, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) commends adoption of the final rule in Case 2017-003 by the Federal Acquisition Regulation (FAR) Council, significantly strengthening the protections of federal taxpayer revenues and streamlining the procurement process for federal contracting officers. SFAA has long supported this amendment, sharing its views through letters to the FAR Council and other outreach initiatives.

Under the new requirements, individual sureties will be required to guarantee their obligations under federal construction bonds with stable, U.S.-backed securities and will no longer be allowed to pledge speculative assets such as real estate or stocks to guarantee their obligations. The new rule will eliminate the need for federal contracting officers to verify the existence and sufficiency of the assets individual sureties pledge to fulfill the individual surety’s obligations should the contractor default on its obligations.

“This new rule provides important assurances for federal contracting officers as well as subcontractors, suppliers and taxpayers who receive protection from federal bonds,” said Lee Covington, president and CEO of SFAA.

“These changes ensure individual bonds will be backed by stable and secure assets, therefore strengthening the integrity of the federal bonding process.”

Other industry associations supported the amendment, including the National Association of Surety Bond
Producers, the Associated General Contractors of America (AGC) and the American Subcontractors Association (ASA). The new rule will go into effect on Feb. 16, 2021.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

FOR IMMEDIATE RELEASE

Contact: Peter Roth, Vice President – Strategic Communications, Marketing & Research
Phone: 703-401-0676
Email: proth@surety.org

PRESIDENT-ELECT ANNOUNCES CRITICAL INFRASTRUCTURE INVESTMENTS ARE IMMEDIATE PRIORITY

Statement by Lee Covington, President & CEO Surety & Fidelity Association

WASHINGTON, DC, January 15, 2021 – The Surety & Fidelity Association of America (SFAA) nonpartisan trade association representing all segments of the surety and fidelity industry is very encouraged about the incoming Biden Administration’s announcements prioritizing investments into critical infrastructure.

Lee Covington, President and CEO of SFAA issued the following statement:

“The more than 425 member companies of SFAA providing protections to workers, taxpayers and small businesses, are very encouraged by the incoming Biden Administration’s plans to address the economic impact of COVID-19. We commend President-elect Biden and his team for i ncluding additional funding for state and local relief, mass transit and public schools in the new COVID-19 relief proposal.

SFAA stands ready to work with Congress on a bipartisan basis to address the impacts of COVID-19 on the construction sector and the broader economy. Further, we look forward to working with the Administration on its forthcoming bold plan for significant infrastructure investment.”

Based in Washington, D.C., SFAA works to promote the value of surety and fidelity bonding by proactively advocating on behalf of our members, and the stakeholders they serve – both in state houses and on Capitol Hill. Government officials rely on SFAA as a source of accurate, data-driven information and insight on how proposed legislation or regulations will affect the surety and fidelity industry and the overall business community.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

Adam Brackemyre Joins SFAA as Vice President of Government Affairs

December 15, 2020, WASHINGTON, DC – The Surety & Fidelity Association of America (SFAA) announced that Adam Brackemyre has joined the organization as Vice President of Government Affairs. Mr. Brackemyre will be responsible for leading SFAA’s government affairs program for the association and its members.

“With nearly twenty years of government affairs experience across the country, Adam brings a wealth of knowledge, expertise and leadership skills to SFAA,” said Lee Covington, SFAA President and CEO. “He will play an instrumental role in leading the legislative work of our association, striving to achieve our members’ strategic advocacy priorities, as well as promoting the value of bonding among all stakeholders.”

“I am honored to join the SFAA team and excited to support Lee’s strategic vision for the association,” said Brackemyre. “I am excited to advance SFAA’s policy positions on surety and fidelity issues in state legislative and regulatory forums. I look forward to working with our members and stakeholders to positively impact our industry and the partners we support.”

Mr. Brackemyre comes to SFAA from the Self-Insurance Institute of America (SIIA) where he served as Vice President, State Government Relations, representing self-insurance issues such as ERISA, stop-loss, excess and surplus lines, TPAs and captives. Prior to SIIA, Mr. Brackemyre worked for the American Academy of Physician Assistants (AAPA) where he advised state chapter leaders and their lobbyists on legislative and regulatory issues.

Mr. Brackemyre received his Master of Public Policy from George Mason University and his Bachelor of Arts from DePauw University where he majored in economics.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

Pennsylvania Governor Signs House Bill 885,
Amends the Public Works Contractors’ Bond Law
Bill Ensures Projects the Necessary Protections to Enable Responsible Development

November 2, 2020, WASHINGTON, DC – The Surety & Fidelity Association of America (SFAA) commends Pennsylvania Governor Wolf for signing House Bill 885 into law. Pennsylvania has enacted House Bill 885, which amends the Public Works Contractors’ Bond Law to remove the ability of contracting bodies to accept any form of alternative financial security when signing contracts for projects.

The Surety & Fidelity Association of America has been working alongside National Association of Surety Bond Producers (NASBP), American Subcontractor Association (ASA), the Insurance Federation of Pennsylvania, and local surety associations on amending Pennsylvania’s bonding requirements. After successful lobbying efforts to consolidate Senate and House bills and getting the threshold limits established, PA HB 885 passed through both chambers of the legislature. It will eliminate the discretion local governments have in the state’s Little Miller Act, which allows them to accept any financial security in lieu of performance and payment bonds. The bill provides that only bonds, letters of credit, or escrow accounts for 100% of the contract amount would be accepted and holds the state’s bonding threshold to $10,000. The amended bill passed the House with little opposition and the Senate unanimously and was signed by Governor Wolf on October 29, 2020. The bill will go into effect 60 days after receiving the Governor’s signature.

“We thank Governor Wolf for recognizing the importance of amending the Public Works Contractors’ Bond Law and will continue to work with state and local agencies to promote the value of surety bonds to protect taxpayer dollars and deliver responsible development.” said SFAA President and CEO Lee Covington. “The infrastructure projects and state businesses that these bonds support are essential to safely getting people back to work and our economy back on track,” continued Covington.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

SFAA Strongly Opposes the Use of Indexing for Payment Bonds

September 2, 2020, WASHINGTON, DC – The Surety & Fidelity Association of America (SFAA) issued a comment letter on August 31, 2020 in strong opposition to the Federal Acquisition Regulation (FAR) proposed increase of the threshold, under The Miller Act, of construction payment bonds. The amount of a payment bond and performance bond should not be subject to indexing for the following reasons:

1. As the FAR previously asserted, Congress never intended for insurance requirements to be “acquisition related,” and surety payment bonds are a regulated insurance product;
2. Increasing bond thresholds has no impact on the Congressional intent for and objective of indexing, which is to eliminate onerous, red tape requirements preventing small businesses from doing business with the federal government;
3. The payment bond requirement is remedial and protective in nature—as recognized by the Supreme Court–which is inherently different from the red-tape, government requirements Congress was trying to reduce; and
4. Indexing the payment bonds will work counter to the very purpose for which indexing was adopted —to help small businesses.

“We will continue to strongly oppose any categorization of these payment bonds and performance bonds as ‘acquisition-related threshold’ goods or services,” said SFAA Vice President of Policy & General Counsel, Julie Alleyne. “Doing so is not consistent with the original Congressional intent and will unnecessarily put businesses and taxpayer money at risk,” continued Alleyne.

Several members from the Construction Industry Procurement Coalition, including the American Subcontractors Association, the Associated General Contractors of America, the National Association of Surety Bond Producers, and others, are also strongly advocating against these changes.

Payment bonds provide essential protections for small businesses on public jobs by guaranteeing the payment of sub-contractors, suppliers, and workers. Surety bonds are often the only form of financial protection that small businesses have if the general contractor defaults.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org 

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676 
E-mail:  proth@surety.org

Texas Commissioner Issues Clarification under Governor’s Executive Order Requiring Acceptance of Electronic Signatures

August 27, 2020, WASHINGTON, DC – The Surety & Fidelity Association of America (SFAA) commends Texas Governor Abbott for issuing a broad executive order that allows public agencies to adapt to the use of electronically-issued contract and commercial surety bonds in response to the COVID-19 pandemic. The Governor authorized the use of all available state and government resources necessary to cope with the disaster. On August 26th, The Texas Department of Insurance (TDI) issued a bulletin clarifying that electronic signatures for surety bond transactions are allowed by the Insurance Code if all parties agree. This action will help to ensure workers are not put at risk while conducting essential business related to the issuance of contract and commercial surety bonds on vital construction projects and other commercial business operations. TDI has created a web page that will be updated on an ongoing basis.

“We will continue to work with state and local agencies to help keep thousands of agents and other workers safe as they go through the ‘re-open’ process. This bulletin requires that public procurement officers accept electronic signatures and electronic corporate seals when both parties agree,” said SFAA President and CEO Lee Covington. “We thank Governor Abbott and The Texas Department of Insurance (TDI) for recognizing the importance of issuing this bulletin and will continue to advocate for the acceptance of e-signatures and e-corporate seals during these unprecedented times. The infrastructure projects and state businesses that these bonds support is essential to getting people back to work and our economy back on track,” continued Covington.

Surety bonds are required by the laws of every state to provide important protections for the public. Construction surety bonds provide critical protections to taxpayers by guaranteeing the performance of contractors, in addition to guaranteeing the payment of small business sub-contractors, suppliers, and workers. Commercial bonds guarantee the obligations of businesses and individuals, such as mortgage broker bonds, contractor license bonds, and guardian bonds, thereby upholding federal, state, and local laws that protect families and consumers from financial harm.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org 

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676  E-mail:  proth@surety.org

Georgia Issues Executive Order Requiring Acceptance of Electronic Signatures and Corporate Seals for Surety Bonds

Governor Kemp issues common-sense solution that will help protect workers

June 17, 2020, WASHINGTON, DC -- The Surety & Fidelity Association of America (SFAA) commends Georgia Governor Kemp for issuing a broad executive order, Empowering a Healthy Georgia, which includes a provision requiring public agencies to accept electronically-issued contract and commercial surety bonds. The electronic bonding portion of the Executive Order will help to ensure workers are not put at risk while conducting essential business related to the issuance of contract and commercial surety bonds on vital construction projects and other commercial business operations.

“We have been working tirelessly across the country with state and local agencies to help keep thousands of agents and other workers safe as they go through the ‘re-open’ process. This order requires that public procurement officers accept electronic signatures and electronic corporate seals,” said SFAA President and CEO Lee Covington. “We thank Governor Kemp and his staff for recognizing the importance of issuing this order and will continue to advocate for the acceptance of e-signatures and e-corporate seals during these unprecedented times. The infrastructure projects and state businesses that these bonds support is essential to getting people back to work and our economy back on track,” continued Covington.

Surety Bonds are required by the laws of every state to provide important protections for the public. Construction surety bonds provide critical protections to taxpayers by guaranteeing the performance of contractors, in addition to guaranteeing the payment of small business sub-contractors, suppliers, and workers. Commercial Bonds guarantee the obligations of businesses and individuals, such as mortgage broker bonds, contractor license bonds, and guardian bonds, thereby upholding federal, state, and local laws that protect families and consumers from financial harm.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org 

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676  E-mail:  proth@surety.org

Stephen C. Taylor Joins SFAA as Director of Policy & Assistant General Counsel

Brings Extensive Public Sector Regulatory, Legislative, and Legal Experience

June 16, 2020, Washington, DC -- The Surety & Fidelity Association of America (SFAA) has announced that Stephen C. Taylor has joined the organization as the Director of Policy & Assistant General Counsel.  Mr. Taylor will be responsible for supporting SFAA’s mission by promoting the surety industry, advocating on behalf of its member’s interests, providing legal counsel, and addressing the broad range of surety related matters.

“With over 25 years of regulatory, legislative, and legal experience in the public sector, I look forward to Stephen joining the SFAA team,” said SFAA President and CEO Lee Covington. “Stephen’s current experience in insurance, securities, and banking for the District of Columbia, combined with his extensive public sector background, will enable him to have an immediate impact on educating and negotiating with government agencies across the nation on surety-related matters.”

Most recently, Mr. Taylor was the Commissioner in the District of Columbia Department of Insurance, Securities and Banking, a role that entailed serving as the city’s chief financial services regulator for state insurance, securities, and banking entities.  Appointed by the Mayor and unanimously confirmed by the DC Council, Mr. Taylor oversaw the department’s $28 million budget, 144 employees and approximately $140 million in revenue.

Previously, Mr. Taylor served as the Assistant Attorney General, Commercial Division, Procurement Section, for Washington, DC and Acting Purchasing Agent and Special Projects Officer for the City of Alexandria, VA, managing the acquisition of goods, services, insurance, and construction.  Mr. Taylor has also held various General Counsel and Acting Deputy Commissioner roles for the District of Columbia’s Department of Insurance, Securities and Banking, OAG; Department of Banking and Financial Institutions, OAG; Office of the Chief Financial Officer; and Council of the District of Columbia.      

Mr. Taylor earned his L.L.M. in Taxation and ERISA/Employee Benefits Certification as well as his juris doctor degree from Georgetown University Law Center; and earned his Bachelor of Arts degree from Fordham University. Mr. Taylor is admitted to the District of Columbia and the Commonwealth of Pennsylvania’s Bar Associations and has actively participated in multiple committees for the Uniform Law Commission.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org 

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676  E-mail:  proth@surety.org

SFAA Supports Infrastructure Provisions Included in The INVEST in America Act But Urges Bipartisan Collaboration and the Inclusion of H.R. 6359

H.R. 6359 Will Ensure Payment and Performance Protections for Taxpayers, Workers and Suppliers

June 4, 2020, WASHINGTON, D.C.— The Surety & Fidelity Association of America (SFAA), commends Chairman DeFazio and House Democrats for the introduction of the INVEST in America Act, a five-year surface transportation reauthorization bill. Advancing infrastructure investment is an important bipartisan issue as our nation deals with high unemployment and economic stagnation as result of the COVID-19 pandemic. Notably, the INVEST in America Act includes a significant increase in infrastructure funding in the first year of enactment of the bill (FY 2021) to address the immediate impacts the global pandemic has had on our nation’s transportation budgets to ensure state, city, tribal, and territorial transit agencies can advance projects and preserve jobs.

Although the bill includes important provisions to increase federal infrastructure spending, the bill excludes critical bipartisan legislation, H.R. 6359, introduced by Congressman Stephen Lynch (D-MA), Congressman Chris Pappas (D-NH), Congressman Troy Balderson (R-OH), and Congressman Daniel Webster (R-FL) to address payment and performance security requirements on TIFIA financed projects utilizing alternative procurement methods. “We strongly encourage the committee to consider amending the INVEST in America Act to include H.R. 6359 to ensure workers and suppliers tasked with building our nation’s infrastructure and U.S. taxpayers receive the important payment and performance protections that have long been required for all public work projects,” said SFAA President & CEO, Lee Covington.

The surety bond industry, which has provided approximately $2.7 trillion of protection for public construction projects over the past decade, looks forward to working with Chairman DeFazio and Ranking Member Graves to advance an infrastructure package that maintains the essential surety bonding protections for taxpayer funding and small business subcontractors and workers tasked with rebuilding America’s infrastructure. 

“SFAA looks forward to working with Democrats and Republicans in Congress to advance a bipartisan infrastructure bill that ensures critical bonding protections are maintained,” added Covington. 

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org 

FOR IMMEDIATE RELEASE

Contact:  Peter Roth - VP Strategic Communications, Marketing and Research
Phone:  (703) 401-0676  E-mail:  proth@surety.org

SFAA Elects New Chair, Directors and Officers - Honors Industry Veterans for their Leadership and Contributions

June 6, 2020, WASHINGTON, D.C.— On Thursday, May 28^th the Surety & Fidelity Association of America (SFAA), hosted its first ever virtual Board of Directors meeting, via Zoom, with great success.  With 100% of the Board participating, the engagement and flow of ideas addressed the key opportunities and challenges facing the industry today. The SFAA senior team, led by Lee Covington SFAA President & CEO, provided an overview of the past year’s accomplishments, in addition to addressing the substantial progress on each of SFAA’s 5 Strategic Priorities. An extensive discussion took place on the unparalleled response and efforts by the SFAA, its members and strategic partners to the COVID-19 Pandemic. The board also accepted the recommendation of the Board appointed Private Bonding Task Force to move forward with a focused private bonding initiative to increase private bonding in targeted subsegments within healthcare and education. Additionally, updates were provided on current and future data studies to be conducted in support of the strategic initiative of Promoting the Value of Bonding. 

The meeting opened with Larry Taylor from Merchants Bonding and SFAA Chair, providing opening comments and remarks and passing the Chair seat to John Welch of CNA Surety. The Board voted in new Directors Kenneth Chapman (IFIC Surety, a member of the IAT Insurance Group), Rick Ciullo (Hartford Bond), Michael Keimig (Markel Surety), Bob Raney (Travelers Bond and Specialty Insurances) and Michael Seff (Intact North America). The Board also voted in new Officers John Welch, Chair (CNA Surety), Robert Murray, Vice Chair (Zurich), Larry Taylor, Past Chair (Merchants Bonding), Bob Raney (The Travelers Companies), Timothy Mikolajewski (Liberty Mutual Surety) and Rick Ciullo (Hartford Bond).

The meeting ended with John Welch, new SFAA Chair, thanking three industry veterans for their leadership and contributions to SFAA and the industry. First, he thanked John Knox, Markel Surety Corporations, for his leadership on the SFAA Board since 2009 and his many contributions to both the industry and personal causes over his career. Next, John thanked Tom Kunkel, Travelers Bond and Specialty Insurance, for not only his leadership on the SFAA Board since 2004 but also for his service as SFAA Chair from 2009-2011. In addition, John provided an overview of Tom’s commitment and leadership to the Surety Foundation, including serving as Chair from 2013 to 2018 and the Foundation’s success.

The final thank you went to Larry Taylor for his leadership over the past two years as SFAA Chair and the past 10 years on the SFAA Executive Committee. A short video was played featuring  images of Larry at many key events and comments from Lee Covington about Larry’s passion for the industry and many accomplishments. https://lnkd.in/g3mYqqS.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org 

FOR IMMEDIATE RELEASE

DOD Takes Action to Provide Common-Sense Solution for Execution of Surety Bonds During the COVID-19 Pandemic

Order Will Provide a Safe Working Environment and Allow Critical Infrastructure Projects to Move Forward Uninterrupted

May 5, 2020, WASHINGTON, D.C.— The Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP) commend the United States Department of Defense (DOD) for issuing a critical Order: Class Deviation: Original Documents, Signatures, Seals, and Notarizations. The order, issued on April 30, 2020, is effective immediately and specifically provides “flexibility with regard to original documents, manual signatures, seals, and notarization in order to facilitate certain essential contracting procedures.”

“This common-sense action will provide a safe working environment to thousands of professionals, limiting the spread of COVID-19 and allowing essential infrastructure projects to move forward.” said SFAA President and CEO Lee Covington. “During these unprecedented times, it is needless to require wet signatures or corporate seals when there are other legal, effective and no risk options available,” added Covington.

"We commend DOD for acting so quickly in issuing this order and providing a safe working solution,” said NASBP CEO Mark McCallum. "DOD is the second federal agency to recognize this urgency. The GSA made a similar announcement on April 6. It is imperative that public officials immediately issue orders in their jurisdictions to protect the health and safety of persons processing, executing and delivering needed protections in the form of surety bonds and to allow work on critical projects to begin and continue unimpeded," added McCallum.

SFAA and NASBP have issued a similar Request for Emergency Action to other federal, state and local officials. These actions will become even more important as the economy “re-opens” for business as they will limit the need for thousands of workers to be in close contact with each other to execute these bonds. “We have been working hard across the entire country to communicate with state and local officials the importance of taking these actions,” Added Covington. To date Illinois, Michigan, Minnesota, Tennessee and Virginia have already taken formal actions specific to electronic execution and delivery, over 25 states have taken action to allow virtual remote notarizations in some form and a significant group of states are close to acting.

SFAA and NASBP encourage all surety professionals to read the Order in its entirety to become familiar with all the deviations permitted and specific procedures for processing and execution.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

Founded in 1942, the National Association of Surety Bond Producers (NASBP) is the association of and resource for surety bond producers and allied professionals. NASBP members specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds. www.nasbp.org

FOR IMMEDIATE RELEASE

Contact:  Peter Roth
Phone:  (703) 401-0676  E-mail:  proth@surety.org

States Take Action to Ensure E-Signatures Are Accepted on Vital Surety Bonds During Covid-19 Pandemic

SFAA commends States for adopting common-sense solutions that help protect workers while allowing essential construction and other commercial services to continue uninterrupted

April 30, 2020, WASHINGTON, D.C.— The Surety & Fidelity Association of America (SFAA), its members and strategic partners have urged emergency action by State Governors and other state agencies to require acceptance of the electronic execution and delivery of construction surety bonds and commercial surety bonds. “We have been urging Governors, state agencies, localities, school districts and other public entities to require the acceptance of electronic execution and delivery of legally required construction and commercial bonds,” said SFAA President and CEO Lee Covington. “We commend the states that have already implemented these actions and are hopeful others will follow,” continued Covington.

To date Illinois, Michigan, Minnesota, Tennessee, and Virginia have already taken formal actions specific to electronic execution and delivery in some form, and over 20 states have taken action to allow virtual remote notarizations in some form to address the challenges with remote working and social distancing requirements. Additional states are working directly with their agencies to informally confirm with construction companies and other stakeholders that the agency will accept electronic signatures with virtual remote notarizations (through Zoom or other video conferencing platforms). In addition, a significant group of states are close to acting. Most of the other states are evaluating the request and working hard to address this need. “With thousands of state and local agencies needing to accept e-bonding and the majority of agencies still requiring wet signatures, we are continuing to work hard in every state to bring clarity to this,” added Covington.

SFAA is requesting additional action even where states have adopted a remote notarization law (RON), as most businesses were not set up to meet the requirement prior to the outbreak. “We are seeking an order interpreting the e-sign statutes in a manner that requires state agencies and all other public entities to accept e-signatures and to either waive the notary requirement or allow virtual remote notarization through video conferencing so that sureties can meet their obligation in a safe manner during the COVID-19 pandemic. This will keep thousands of agents and other workers across the country safe and will be even more important as states begin to “re-open” for business,” said Covington.

Surety Bonds are required by the laws of every state to provide important protections for the public. Construction surety bonds provide critical protections to taxpayers by guaranteeing the performance of contractors, in addition to guaranteeing the payment of small business sub-contractors, suppliers, and workers. Commercial Bonds guarantee the obligations of businesses and individuals, such as mortgage broker bonds, contractor license bonds, and guardian bonds, thereby upholding federal, state, and local laws that protect families and consumers from financial harm.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org 

FOR IMMEDIATE RELEASE

GSA Issues Order to Accept E-Signatures for Surety Bonds During the COVID-19 Pandemic
Will Allow Critical Infrastructure Projects to Move Forward

April 9, 2020, WASHINGTON, D.C.— The Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP) commends the United States General Services Administration (GSA) for issuing a critical Order: Class Deviation – Flexibilities for Signatures and Seals on Bonds. The order, issued on April 6, 2020, will allow vendors and sureties to use electronic signatures in lieu of manual signatures and eliminate the requirement for any seals on the surety bonds. The GSA stated in their revisions to FAR, “neither requirement is conducive nor beneficial during times of emergency or crisis such as those presented by the Novel Coronavirus 2019 (COVID-19 pandemic).”

“The NASBP, SFAA and our industry members commend GSA for acting so quickly in issuing this order and we are working with other federal, state and local officials to issue similar orders under their authority,” said NASBP CEO Mark McCallum. “It is imperative that public officials immediately issue these orders in their jurisdictions to allow work on critical projects to begin and continue, while maintaining important protections for construction firms, workers and taxpayers,” added McCallum. This order extends to GSA contracts only and SFAA and NASBP have issued a similar Request for Emergency Action to other federal, state and local officials.

The order is effective immediately and remains in effect until rescinded or incorporated into the FAR and GSAR. “We thank GSA for having the foresight to recognize this need and take definitive action,” commented SFAA President and CEO Lee Covington. “We strongly encourage other agencies and officials to follow GSA’s lead and issue deviation orders for essential infrastructure projects. These projects are directly related to health, safety and the growth of our economy," added Covington.

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The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org

Founded in 1942, the National Association of Surety Bond Producers (NASBP) is the association of and resource for surety bond producers and allied professionals. NASBP members specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds. www.nasbp.org