Bonds

It is usual practice for owners of a project to require contractors and suppliers to provide a bond when tendering or entering into contracts guaranteeing performance. Bonds are not insurance policies and rather a form of guarantee made usually between three parties. Unlike insurance policies, the contractor indemnifies the insurance company from any loss under the policy and accordingly the insurance company guarantees the performance of the contractor for a given project.

When selecting an insurance company to provide a bond it is important to partner with a company like Maritime General that not only provides the security that your Client needs but can also assist in ensuring that losses are not suffered under the contract.