Bonds & Surety

Buyers are increasingly demanding Bonds & Surety to protect them against losses suffered because of a third 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 Bonds or Surety provided, liability is shared between the contractor and bondsman, which could be a bank or an Insurer. With Bonds & Surety 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

Types of Bonds & Surety

If you would like to discuss credit insurance in more detail, please do not hesitate to contact us.