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DSP Bond Difficulties


Greg McAllister

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Any thoughts or advice for a start-up where the principals have personal Ch. 7 bankruptcies and cannot get a DSP bond through a major insurer? Apparently, insurance underwriters are as risk averse as bank underwriters when it comes to a dreaded bankruptcy even though we're cash customers and now not nearly as leveraged or in debt as the average borrower...

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I have heard of people having to put up the full bond amount in an escrow account to satisfy the TTB when they have difficulties securing the bond. This is second hand, but if all else fails, I believe this is a path available to you.

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