Why is the wording of Surety Bonds so important?
Surety Bonds form a written agreement, provided via a Bondsman or surety (generally an insurance company), guaranteeing that a contract will be performed and completed by the client and successfully delivered to a third party, known as the beneficiary or employer.
Typical sectors that benefit from surety Bonds include construction, property developers, engineering, importers, food & drink, outsourcing, waste, energy, manufacturing, retail, automotive and mining.
In the event that goods or services are not delivered, Bonds ensure compensation will be provided and damages covered - rather like an insurance policy that pays out if something goes wrong.
As such, Bonds can be complex and must be individually tailored to the specific requirements of a project, which means the wording of a Surety Bond is very important, particularly within the construction sector.
With many years’ experience acting on behalf of clients and arranging Bonds via the Bondsman or surety, NLIG has in-depth knowledge of the system and its requirements, and will ensure that Bond wording complies to guidelines issued by such bodies as the Institution of Civil Engineers (ICE) and the Association of British Insurers (ABI).
We will also ensure that the language is concise and clear, easy to understand and provides room for negotiation with the beneficiary or employer. If necessary, we will remove or renegotiate ‘on demand’ requirements, stipulated by the beneficiary, so you are not liable for additional, unseen costs.
We are experienced in arranging all types of Surety Bond and can explain each step of the procedure, how to get the best from a Bondsman and how to present Bonds to your existing and prospective principals. With a reputation for negotiating hard on behalf of clients, you can be sure you will benefit from the keenest terms and most competitive costs.
To find out more and discuss your individual requirements, please call us on 01992 703300 or email: insurance@nlig.co.uk