Bonds give businesses with contractual obligations protection by giving them a guarantee of payment or damages owed under a contract. It’s popular with the construction and civil engineering sector as well as in importing, brewing, outsourcing, services, waste sectors and more. The policy lets you avoid potentially ruinous financial risks while guaranteeing surety.
What’s covered?
Bonds and Guarantees insurance protects you if a seller fails to meet their contractual obligations. It covers:
- Contractor default
- Performance and retention guarantees
- Advanced payment guarantees
- Bid bonds and maintenance guarantees
- Customs and excise guarantees
- Warehouse guarantees
- Utility guarantees.
- Court and administration bonds, including liquidation bonds and deceased estates
- Trade bonds for government departments and suppliers against enterprise debt payment failure