Businesses attracted to lucrative federal projects that need bonding insurance now have another option in a specialized market.
Marsh Micronesia Inc. plans to aggressively seek bonding insurance for interested clients.
Garry J. Curran president and chief executive officer said clients interested in becoming bonded could seek the company’s help Curran said. Greg S. Kalbaugh assistant general manager and senior account executive was brought on board Sept. 26 to handle the bonding portion of the Marsh business. “We are an insurance broker. We will be able to help clients find markets both locally and internationally that will serve their needs.” Kalbaugh was formerly of Nanbo Insurance Underwriters.
Companies seeking work with the federal government or U.S. military contractors must be bonded by a U.S. Treasury-listed indemnity and assurance provider.
All federal projects above $25 000 require bonding from U.S. Treasury-listed companies.
Since opening in April 22 2003 Marsh already caters to the airline industry hospitality industry and luxury-goods imports.
Kalbaugh said “Marsh is unique in that we’re large and we’re networked. Globally we have access into Asia as well as the U.S. mainland and Hawaii. What we want to do is use our extensive market base to access sureties that can provide those types of bonds that may not be as readily available on Guam.”
Marsh has company offices in Asia including Taiwan Singapore Hong Kong Beijing Shanghai and Guangzhou.
Only a few companies are offering a bonding service or product on Guam.
Cassidy’s Associated Insurers Pacific Indemnity Insurance Co. Takagi & Associates Inc. and Moylan’s Insurance Underwriters Inc. offer bonding.
Kalbaugh said Marsh’s new bonding offering will not saturate the market “There’s a limitation on how many [U.S.] Treasury-listed companies are doing business on Guam. So there wouldn’t be a saturation there.”
Kalbaugh added private sector bonding requirements are not relaxed but consumers might need educating on the importance of dealing with companies that are bonded. “Are they reputable have they been around awhile do they have the resources to get the job done?”
The Small Business Administration on Guam contends businesses that can be bonded stand out from their competition — by having a credible bond line it shows a certain level of stability in the company’s management and business practices.
The bonding company guarantees to the federal government or issuer of the proposal that the contractor will finish the scope of work in the contract on time and will pay contracting debts related to the project.
According to Kalbaugh bonding helps to grow the economy. “Local contractors wanting to do business with the federal government or the military with bonding will be better able to compete for projects they did not have access to without bonding. That translates into being able to hire more employees paying for goods and services on Guam paying employees who in turn will spend that money in the local economy.”
He said the company would first go to its client core to inform them of the ability to receive bonding through Marsh before advertising in the community.
Marsh is a member of the Marsh & McLennan group of companies and offers other services on Guam to the corporate market and mid-market sectors such as property insurance corporate transparency corporate governance and accountability. MBJ