It’s pig iron underwater!

This post is part of a series sponsored by Old Republic Surety.

For some of my fellow insurance professionals, there has always been an air of mystery surrounding the surety industry. Perhaps it’s the exotic language we use to refer to “creditor” or “principal.” Perhaps it is the guarantor’s ability to quickly reveal the customer’s secrets. financial statements and translate pages of numbers into comments of praise and questions of concern.

Indeed, simple, clear language can remove barriers and make the job of a guarantor more comfortable for some. In recent years, there has been a movement toward changing applications. form of bond Reference language creditor Simply replace the word as “owner” major “Contractor.” Obfuscation should be avoided. In other words, avoid overly complex words.

One of my favorite idioms used in assurance work comes directly from the insurance industry. Sometimes we receive submissions where the agent clearly writes at the beginning of the submission.Piu“.this is, pig iron underwater. This old stage dates back to the early days of fire insurance. Pig iron is an intermediate product of the steel industry and is also known as crude iron. When iron ingots are manufactured (used, for example, to make ductile iron pipes), molten iron pieces are broken up from runners (known as saws) and placed in water to cool. The cooled ingot takes on the shape of a piglet, which is why it is called pig iron. The gist of this statement is that iron is considered relatively flammable (it melts at 1200 degrees Celsius). Now place the iron in the water. It’s about the safest hazard in terms of fire hazard. Therefore, pig iron in water is a way to be sure. It’s a safe bet. That’s money kept in the bank. It’s risk free.

Of course, one person’s pig iron in the water can become another person’s greasy rag in the corner on a hot day. This is why underwriters exist to make that decision.

We believe that warranties should be available to everyone, and we’re ready to help you turn your next opportunity into business fortune. Therefore, if the construction client requires performance and payment If you require a security deposit or commercial guarantee or have any questions, please contact us. We will meet your warranty needs.

This blog was originally Old Republic Security Website. Reprinted here with permission.