Surety & Bond Insurance
What is a Surety Bond?
A surety bond or surety is a promise by a surety or guarantor to pay one party a certain amount if a second party fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation.
How do Performance Bonds work?
A Construction Performance Bond is a tripartite agreement and is designed to offer some protection to the beneficiary in cases were the contractor fails to perform the contract.
The reasons for such failure could be insolvency, default or any other actions as defined in the contract or bond wording. In the case of a dispute, the first action would be for the contractor/sub-contractor to remedy the issue, if that fails and a call is made on the bond the surety will investigate the matter, if the claim is valid the damages would be established and ascertained in accordance with the contract.
What We Require from You
Provide us the details of the operation which is the subject of the bond requirement, including bond amount and period for which it will be required, together with a completed application form plus:
- A copy of the bond wording required by relevant body
- A copy of your last published audited accounts (if you are part of group accounts too)
- A copy of your latest management accounts
- Completed Proposal Form
On receipt of this information, the application will be submitted to our panel of underwriters for their consideration. On the successful underwriting, we should be in a position to offer competitive non-binding indications of terms, as quickly as possible.
Once you have accepted our terms and provided any additional information requested, we will send you any legal documents that need to be executed (such as counter-indemnities) and an invoice for the premium.
Following receipt of the legal paperwork and premium, we will issue the bond.