Surety & Fidelity

Contractor: Sea Engineering, Inc. Agency: Jerry Hay, Inc.

Since 1911, we've had Hawaii covered

As the oldest and largest property and casualty insurance company headquartered in Hawaii, we understand the unique needs of our community. We’ve helped island residents and businesses alike with their insurance and surety needs for nearly a century. We are currently preparing for our next century of service to our community here in Hawaii.

Financial Strength

We take great pride in having an "A" (Excellent) "VIII" ($100 Million to $250 Million) A.M. Best Rating. Our Treasury Listing is $23,818,000, and we are licensed to write surety in the State of Hawaii and the island of Guam. With over $680 million in assets, shareholders' surplus exceeding $230 million, we have the financial stability you can depend on. We are owned 100% by Tokio Marine & Nichido Fire Insurance Co., Ltd.

Decades of Surety Experience

Our Surety & Fidelity department has, combined, three-quarters of a century of Surety experience. We have strong relationships with our parent company and reinsurer. While we have established underwriting guidelines in place, if a risk makes sense in our estimation, we can write it.

We Look Forward to Meeting yor Surety & Fidelity Needs

• Melissa Current, Surety & Fidelity Manager
(808) 527-7609
melissa.current@ficoh.com

• Helen Hardink, Surety & Fidelity Underwriter
(808) 527-7306
helen.hardlink@ficoh.com

• Marsha Nugal, Surety & Fidelity Associate III
(808) 527-7310
marsha.nugal@ficoh.com

What is Surety?

Surety is a guarantee by one party (the Surety) to another party (the Obligee) that a third party (the Principal) will fulfill its promises and responsibilities, via a bond. Surety has been around for thousands of years; and has evolved to its present state – a protection to public and private entities and individuals against loss or damage. The Obligee has the expectation that the Surety will only provide surety credit for qualified Principals. The Surety qualifies the Principal based upon the underwriting of the Principals’ character, capacity (experience), and capital (financial structure); along with the specific bond need in question.

What is the difference between Surety Credit and Insurance?

Insurance is a two-party agreement – between the Insured and the Insurance Company. Surety is an agreement between three parties – the Obligee (the individual or entity protected by the Surety), the Principal (the individual or entity providing the bond to the Obligee), and the Surety (the entity writing the bond that guarantees the responsibilities of the Principal will be fulfilled to the Obligee).

Insurance is written with the understanding that there will be losses, and premium is charged based upon the risk being insured. Surety is underwritten, in theory, to produce no losses. As Surety is a protection to the Obligee, surety underwriting is based upon the character, capacity, and capital of the Principal. Surety premiums are not commensurate with the risk assumed; but are simply a fee for the underwriting of the Principal.

When an Insurance Company pays out on a policy, there is no expectation of repayment by the insured. Surety underwriting includes indemnification provided by the Principal; which means that any monies paid out by the Surety on behalf of the Principal are expected to be repaid, dollar-for-dollar, by the Principal.

Insurance Companies generally try to write any insured. Surety underwriting is by its very nature selective; in that only qualified and capable individuals and business entities are provided surety credit, based upon the character, capacity, and capital of said individuals and business entities; as well as, the specific bond requirement.

What type of Surety Credit does FICOH provide?

Contract Surety
We support surety credit for emerging to mid-sized construction companies. While we are capable of supporting programs of $20,000,000 single and aggregate (sum total of all bonded work-in-progress, known bid requests, and awarded projects to be bonded); our preferred program size is up to $8,000,000 single, and up to $15,000,000 aggregate. For small and emerging construction entities, we offer our FastTrack program with limits of up to $250,000 single and $500,000 aggregate.

Commercial and Miscellaneous Surety
We can write license and permit, public official, various miscellaneous undertakings, and other non-contract surety bonds for individuals and businesses in our local community.

Fidelity Coverage
We offer ERISA and Employee Dishonesty fidelity coverage to well established businesses in our local community.