Introducing Electronic Signatures on Indemnity Agreements
April 1, 2021
Currently Available on Commercial Bonds up to $200,000 & Most Contract GIAs
Plus Signatures Waived on Commercial Bonds up to $75,000
Merchants Bonding Company is now accepting electronic signatures for most contract general indemnity agreements and commercial indemnity agreements on commercial bonds up to $200,000, eliminating the manual paper process for our agents, principals and indemnitors. Additionally, signed indemnity agreements will no longer be required on commercial bonds up to $75,000.
"The surety industry as a whole has been asking for easier options, so these are exciting developments for Merchants that reinforce our commitment to providing first class experiences for our customers," says Chief Marketing & Communications Officer Therese Wielage.
Electronic Execution of Contract GIAs
By utilizing DocuSign with Knowledge Based Authentication (KBA), Merchants balances efficiency and security, while promoting the surety industry's move towards electronic execution and delivery of surety bonds. Obtaining hard copy indemnity agreements with notarized wet signatures can be a tedious process. By transitioning to e-signatures, we can quickly and efficiently expedite the indemnity agreement with minimal effort from our agents or indemnitors.
Electronically Signed Commercial Indemnity Agreements
The electronic signature process is fully integrated into the Merchants Bonding Company Hub™, aligning with the streamlined and efficient bond order process our agents expect. After issuing the bond on the Hub, users simply enter the name, email address, and title of the indemnitor(s) to seamlessly send an email directly to indemnitors containing the commercial documents needed for electronic signature. Once completed, the signed documents are made available for download on the bond transcript page.
Waived Commercial Indemnity Agreements
For added efficiency, signed indemnity agreements will no longer be required on commercial surety bonds up to $75,000. All bonds will remain at their same underwriting class; credit and financial statements will still be requested on class 3 and class 4 bonds as usual. Additionally, bonds on an account with aggregate liability above $75,000 will require a signed indemnity agreement.
We are confident these new policies and procedures will be instrumental in saving our agents time. Our top priority is ensuring our agents and principals continue to receive first class experiences and convenient bonding. For more information contact your Merchants underwriter or email info@merchantsbonding.com.