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ABOUT THE CLAIM
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This month’s bond claim case study comes to us courtesy of the commercial side of the surety business. The proprietor of a multi-location check cashing company had committed fraud when reporting transactions and had subsequently been indicted. By stipulating lower amounts on mandatory reporting forms, he had attempted to avoid paying state taxes. Unfortunately for him, the state’s audit had caught his discrepancies. Later, a grand jury found sufficient evidence of probable criminality. On these four specific tax bond claims, the surety knew Guardian’s knowledge of the processes required for each claim type and the company’s reputation for thoroughness would best serve its interests.
ABOUT THE INVESTIGATION
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Unlike on the contract side of the surety business wherein travel to the construction site is often required, commercial claims only rarely require in-person investigations. That’s why, immediately upon notification of the claim, Guardian’s commercial surety bond expert was able to commence a thorough review of the claim and the supporting paperwork prepared by the state’s revenue authority. Naturally, a review of the bonds themselves was also in order. Against a total of $300,000 in bonds, claims were in excess of $125,000. This figure included penalties and interest as deemed and determined by the principal’s legal team.
ABOUT THE RESOLUTION
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While there was little doubt remaining as to the principal’s fraud and guilt, Guardian’s expert took issue with the “penalties and interest” built into the obligee’s sum and took even greater issue with a discovered discrepancy between the dates of the alleged fraud and the bonds’ coverage periods. With “no claim too small” to warrant time and money-saving diligence, Guardian’s expert prepared the documentation needed to begin negotiations in earnest. Having reviewed the policies, the claims, and the state’s case, and having gone the extra mile in correlating these to a calendar of events, Guardian was able to demonstrate that the state was asking for more than what it was entitled per terms of the bond. Due to the trust placed in Guardian by the surety and the diligence of Guardian’s team, the surety was able to save in excess of $25,000.
ABOUT GUARDIAN GROUP, INC.
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Working with Guardian Group, Inc. means you’ve not only got the right technical construction/engineering and claim resources in place to resolve your contract bond claims but the investigations and administrative experience to handle virtually every type of commercial (non-contract) bond claim, from the everyday and routine to the complex and exacerbated risk. Whether providing investigation and resolution services on just one particular small, medium, or large-sized claim or serving as your Third Party Administrator, Guardian Group enables your team to leverage over 30 years’ experience. The company’s claim specialists bring that experience to bear on every type of surety claim, from complex construction defaults to commercial claims of virtually every type and size. Experience. Expedience. Pragmatic problem-solving. Kindly call on Guardian Group today.