Bonds and insurance guarantees

What are Bonds and Insurance Guarantees?

A bond is a financially backed legal promise or guarantee, also known as surety. A bond is not insurance but has similar characteristics. When a commercial contract is in place, a bond can be used as a financial guarantee that a contract will be fulfilled.

How does a bond work?

The bond will normally be purchased by the contractor/supplier/client/tenant to provide a financial guarantee to the employer/landlord/purchaser, who will be the beneficiary of the bond. The beneficiary can then demand payment if the contract is breached – it is important to note the difference between Conditional and On-Demand bonds at this point, see FAQs.

How to get a quote for a bond?

If you would like a bond, we will need to gather some details from you before we approach our markets. Please call us on 01905 21681 or email us here.