Insurance Bond Definition | Performance Guarantee Bond
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Surety Bonds

Photo of handshake | Lonsdale Insurance Brokers | Surety BondsKeith Cordwell has many years’ experience providing various types of Surety Bonds to clients in Europe and overseas.

We are able to offer a wide range of Surety Bonds, particularly for the Construction Industry including Construction Performance Bonds, Advance Payment Bonds, Bid Bonds, Retention and Maintenance Bonds.

A Construction Performance Bond is a Surety Bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a Contractor.

Example: A Contractor may be required to obtain a Performance Bond to be issued in favour of an Employer for whom the Contractor is constructing a building project. Should the Contractor default on the Contract specifications of the building project (most often due to the bankruptcy or insolvency of the Contractor) the Employer is guaranteed compensation for any monetary loss up to the value amount of the Performance Bond.
An insurance company Bond enables a Contractor to free up working capital (overdraft facility) whereas a guarantee issued by a bank is a drawing of the Contractor’s credit facilities and may require a charge over cash/assets to the value of the Bond or Bonds. Unlike bank guarantees, Surety Bonds issued by an insurance company are almost always conditional, placing the onus on the beneficiary to prove loss in the event of a contract default.

We have access to various insurance companies offering Surety Bonds.

Keith will be happy to assist with any Surety Bond enquiries.

Please Email Keith Cordwell to request a Bond Application Form.

Contact Details:

Keith Cordwell
Email Keith Cordwell
Tel: 0203 713 3886