Surety bonds are a financial instrument that are requested by an employer via a contract, often in the JCT format but also in the NEC contracts. The surety (Guarantor) is providing a guarantee to the principal so as to reassure them that the contractor will fulfil their obligations.
Bonds while offered by Insurance Companies and Banks are not actually Insurance Products and as such are not insuring any risk but the large financial institutions are deemed suitable guarantors should the contractor fail by default or insolvency to fulfil their contractual obligations.
Insurance Companies unlike Banks are more accustomed to the exposure of some risk, therefore using an Insurance Company over a bank will often free up cash flow as they will not often require cash deposits or charges which are common security requested by a bank.
Surety Bonds and Guarantees
Surety Bonds and Guarantees work with a vast range of clients from Main Contractors, Tier 1,2 & 3 Sub Contractors, Councils, Independant House Builders, Developers and Private Individuals to support any requirement they may have.
We are able to offer any type of Surety Bond, the most common are detailed on our site but our markets are able to consider any requirement you may have so please call one of our team today.
Call now to speak to one of our specialist Bond Brokers – 02476 017646
We can offer any bond for any contract including