Bond Insurance
Bond
Bond insurance is a type of insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders in the event of default. Bond issuers will buy this type of insurance to enhance their credit rating in order to reduce the amount of interest that it needs to pay and make the bonds more attractive to potential investors.
Bond Insurance Services
Bid Bond
A bid bond provides a guarantee that a winning bidder will take up the contract as per the terms at which they bid. A bid bond ensures compensation to the bond owner if the bidder fails to begin a project. Bid bonds are often used in construction jobs or other projects that follow a similar bid-based selection process.
Retention Bond
Retention bond guarantees that the contractor
will carry out all necessary work to correct structuraland/or other defects discovered immediately after completion of the contract, even if full payment has been made to the contractor.
Maintenance Bond
A maintenance bond is a type of surety bond purchased by a contractor that protects the owner of a completed construction project for a specified time period against defects and faults in materials, workmanship, and design that could arise later if the project was done incorrectly.
Performance Bond
A performance bond is a type of contract construction bond that guarantees a contractor will complete a project according to the terms outlined in a contract by the project owner.
Advance Payment Bond
It is a guarantee given when money is paid before goods or services are supplied. So, if the client agrees to make an advance payment (sometimes referred to as a down payment) to a supplier, a bond may be required to secure the payment against default by the contractor.
Warehouse Bond/Custom Bonds
A Customs bonded warehouse is a building or other secured area in which imported dutiable merchandise may be stored, manipulated, or undergo manufacturing operations without payment of duty for up to 5 years from the date of importation.
Customs Transit Bond
The main aim of customs bonds is to secure duty payable to the government. They can either be General bonds or Particular bonds. The types of bonds as well as their rules of operation generally depend on the customs regime under which they are issued.