About Us
Claim Consulting/TPA services
Investigating and adjusting surety bond claims has been the primary business of COP since 1985. COP’s philosophy has always been that rapid response minimizes loss.  When a project is on the early stages of trouble, accommodations are more easily negotiated than after a project has lost its momentum and the parties have become hostile. COP pursues the quickest, most cost-effective approach for problem resolution by focusing close and constant attention to the “action steps” required of each and every party to the controversy to assure steady progress toward a timely, fair, and economical result.  
Gulf Insurance Company – We handled their entire contract surety claim program from 1997 through 2006 when they were purchased by Travellers. Handled all correspondence on claims, reported file specific activity to surety representative as needed, established reserves, adjusted/paid claims within established authority levels, maintained a trust account  (approx. $800,000/month) for payment of claims, reported all claim activity through a monthly bordereaux , performed all subrogation, established claim authority levels, reinsurance reporting, prepared large loss reports as needed, handled audits on book of business performed by the SBA and/or treaty reinsurers.
For our current clients, we continue to handle contract and miscellanoues surety claims nationwide. Simple payments bond claims to complex completion issues. Oversee the completion of various projects, analyze and resolve payment claims, manage disputed issues, oversee litigation, etc. 
Funds Control
Through the underwriting process, risk is assessed based on “Capacity, Capital and Character” which is nothing more than a snapshot in time. But we all know that circumstances change rapidly, especially in construction.  Every time an Owner/Obligee releases a contract payment directly to the contractor it is a “roll of the dice”…. Will the funds be used for costs incurred on this job and ONLY this job?  Will the vendors be paid? Will the contractor take all of his profit upfront and allow his vendors to finance the job?   The good news - this is a controllable risk!
Unlike other escrow companies, our expertise in claim resolution and project completion allows COP to adopt a more proactive approach to preventing costly bond claims. We believe that having a claims analyst review the project documentation, in a close working relationship with the contractor, insures that the Surety receives the additional security that funds control is designed to provide.  In addition, all contract funds are deposited in a separate bank account in the name of the bonded contractor, but disbursements are controlled by COP. In this way, our system prevents the commingling of funds and provides an additional level of security and accountability to the surety and the contractor. Click here to see what some of our customers have to say:
Auditing/Due Diligence
When a “second opinion” is desired in a book of surety losses or on the quality of a surety operation, COP has the resources and experience to provide useful analysis and recommendations.  COP’s surety loss development analysis has been employed for a variety of purposes such as for determining IBNR levels, developing reinsurance presentations, acquisition due diligence and loss portfolio transfers.
In 2000, Amwest was looking to renew their reinsurance in order to continue operations. Their reinsurer, Swiss Re, had prior experience with COP and asked us to perform due diligence on their behalf in order to determine if they would be able to renew their reinsurance treaty. We travelled to Thousand Oaks, CA, spent a week auditing claim files, reviewing loss reports, going over internal processes and procedures. The results were then put into a narrative report and submitted to Swiss Re. Swiss Re chose to not renew Amwest’s reinsurance.  
In 2003, Lyndon asked us to perform a surety claim audit on the book of business they had acquired from Cumberland Casualty as they were concerned about the frequency of losses, adequacy of reserves and overall effectiveness of the claims handling.  
Loss Portfolio Transfers
In 1998 Nobel Insurance Company (Dallas, TX) was experiencing large losses on its surety bond program. They sold their underwriting business/licenses however, they were burdened with exorbitant claims/losses and desired to make a clean break from the surety industry. COP entered into a thirty million dollar Loss Portfolio Transfer whereby Nobel essentially funded a trust account with the amount of funds COP anticipated it would take to run-off their liability. Through this LPT, COP assumed all responsibility for claims handling, loss reporting, reinsurance reporting, trust account balancing, and subrogation. In 2006, the treaty was then commuted and the trust account was divided among the parties. The LPT was a huge success for all parties involved as the losses came in well below the anticipated level.