Contact Maureen Ellis or Roy Walton directly on 01707 894403 or email us on firstname.lastname@example.org for for bonds and guarantees insurance
BONDS AND GUARANTEES INSURANCE
Bonds can be supported by the insurance market who provide a written guarantee to pay a third party, the beneficiary, for loss and damage suffered as a result of a breach of contractual obligation. Normally this occurs upon the insolvency of the contracting party. Bond facilities supported by the insurance market, do not normally affect existing credit lines.
Other Bonds and Guarantees Insurance available:
Protects the employer against the contractor failing to perform against the terms and conditions of the written contract.
Custom Trade Bonds
The posting of a Customs Bond allows the company to import and distribute goods prior to payment or duty thereby freeing up cash flow.
Guarantees the employer that the contractor will honour a contract awarded.
Development of Roads and Services Bonds
A guarantee on behalf of the developer or house builder that they will complete the roads and services as defined in the planning permission to enable them to be taken in charge by the relevant authority.
Issued on behalf of contractors this bond guarantees that the bank will pay a certain sum of money should the contractor fail to comply with all or some the terms of his contract with the buyer. The sum involved is usually an agreed percentage of the value of the contract and the Bond will mature upon completion of the contract or within a specified period thereafter.
Similar to Advance Payment Bonds, this bonds and guarantees insurance enable the contractor to obtain release of retention monies normally withheld until such time as the contract has been completed and running for an agreed period of time.
To summarise bonds and guarantees insurance:
Bonds and guarantees insurance facilitates issuers of a bond or guarantee to pay a premium to an insurer who will provide interest and capital repayments as specified in the bond in the event of the failure of the issuer to do so. This has the effect of raising the bond rating to the rating of the insurer. As a result a bond insurer’s credit rating must be almost perfect.
The premium for bonds and guarantees insurance is calculated on the measure of the perceived risk of a failure of the issuer.