A Year-End Meeting with Your Surety and Agent Could Make or Break Your 2026

Author, Andy Roberts, Surety Group Leader, Rancho Mesa Insurance Services, Inc.

As 2025 comes to a close, companies are focused on finalizing their year-end financials. For contractors, it is important to have a surety agent who will coordinate a meeting with the surety company early in 2026, once the year-end financials are completed. This meeting is important for several reasons, including reviewing the previous year's financial performance, looking at the outlook for the coming year, understanding current bonding capacity limits, and discussing any potential issues on the horizon.

The primary aim of reviewing year-end financials with the surety company and agent is to gain an accurate picture of the business's performance. Key financial items such as profitability, working capital, and equity are essential in determining bonding capacity limits. Furthermore, once the year-end financials are ready, it is important to discuss any significant changes. Whether it involves declining cash flow, increased debt, or performance issues with specific projects.

While evaluating the previous year's financials is a central aspect of this meeting, it is equally important to look ahead. The discussion should include the contractor's upcoming projects and the bonding requirements associated with them. This proactive approach not only helps in planning for the future but also gives the surety an idea of what they will be needing with regards to bonds in the future. 

In addition to the year-end meeting, maintaining regular communication with your surety company and agent is essential for building a stronger relationship. Consistent communication will help foster trust, which ultimately benefits the contractor by providing greater access to bonding limits.

In conclusion, the year-end meeting with your surety team is important to review past performance, plan for the future, and strengthen the contractor’s relationship with the surety and the agent. By prioritizing this meeting and maintaining open lines of communication, contractors can set themselves up for success in the coming year. 

For questions regarding the importance of this meeting, please give me a call at (619) 937-0166 or email me at aroberts@ranchomesa.com.