Surety Bonds & Guarantees

Our wide range of surety products cover a variety of situations and risk types. Each client has very particular requirements, with interests and exposures that are unique to the sector and situation. That’s why we create bespoke solutions,tailored to individual needs.

What is a Surety Bond?

A surety bond or guarantee is a promise to pay one party (the beneficiary or employer) a certain amount of money if a second party (the principal or contractor) fails to meet an obligation, such as fulfilling the terms of a contract. The surety bond protects the beneficiary/ employer against losses resulting from the principal’s/ contractor’s failure to meet that obligation.

Surety bonds are most commonly found in the construction industry, where the employer needs some financial comfort that a project will be completed, however, bonds are required in many different industry sectors.

Bond types

Performance bonds

Mostly used in the construction and services industries, these secure the performance of a contractual obligation and typically cover 10% of the contract value

Retention bonds

Most construction contracts enable the employer to withhold a percentage of monies at each certified payment during the contract. The contractor can provide a retention bond as an alternative form of security to obtain the full amount of payments – improving their cash flow.