Bonds & Guarantees
Underwriting Performance
At CBF we offer a wide range of specialist Bonds and Guarantees.
Buyers are increasingly demanding Bonds and Guarantees to protect them against losses suffered because of a 3rd party’s defective work or delay, up to the value of the Bond – which is usually 10% of the content sum. They are also covered if a contractor becomes Insolvent.
Depending on the type of Bond or Guarantee provided, liability is shared between the contractor and bondsman, which could be a bank or an Insurer. With Bonds and Guarantees supported by the insurance market, existing banking lines aren’t normally affected.
There are several benefits to these types of policies, including:
- Replacement of the loss in the event that the insured party fails.
- A contract can be undertaken with reduced risk.
- A failed contract can be completed once the Bond has been called.
- They provide the confidence to proceed with the contract.
- Disputes are resolved quickly through Underwriters’ involvement.
Find out more about this service.
Our Account Managers are available to answer any queries.
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