It’s Pig Iron Beneath Water!

This submit is a part of a collection sponsored by Previous Republic Surety.

To a few of my fellow insurance coverage professionals, the surety enterprise has at all times had an aura about it. Maybe it’s the unique language we use referring to “Obligee’s” and “Principals”. Possibly it’s the surety underwriter’s skill to rapidly unlock the secrets and techniques of a consumer’s monetary assertion and translate a web page of numbers to feedback of reward or questions of concern.

It’s true that easy, clearer language can break down limitations and make writing surety enterprise extra comfy for some. Lately I’ve seen a motion in altering software and bond type language to seek advice from the Obligee merely because the “Proprietor” and change the phrase principal with “Contractor”. We have to eschew obfuscation. I imply, keep away from overly sophisticated phrases.

One among my favourite idioms used within the surety enterprise got here instantly from the insurance coverage business. We’ll generally obtain a submission the place the agent has written clearly on the prime of the submission “PIUW“. This stands for Pig Iron Beneath Water. This previous section comes from the early days of fireplace insurance coverage. Pig Iron is an intermediate product of the iron business, also called crude iron. When Iron ingots are made (these are used to make Ductile Iron pipe, as an example) they break off molten items of the iron off the runner (often called the sow) into water to chill. The cooling ingots type right into a form that appears like a child pig, thus the title pig iron. The purpose of the assertion is that Iron is taken into account comparatively inflammable (It melts at 1200 levels Celsius). Now put iron underneath water, and by way of a hearth danger, you will have in regards to the most secure danger there may be. So pig iron underneath water is a approach to signify a certain factor. A protected guess. It’s cash within the financial institution. It’s the absence of danger.

In fact one particular person’s pig iron underneath water could be one other particular person’s oily rags within the nook on a scorching day. This is the reason we’ve underwriters to make that dedication.

We consider surety must be accessible to everybody and we’re prepared that will help you translate the following alternative into enterprise fortune. So if in case you have a building consumer that wants a efficiency and fee bond or if in case you have business surety want or query, contact us and we are going to aid you along with your surety wants.

This weblog was initially revealed on the Previous Republic Surety web site. It’s reproduced right here with permission.