Performance Bond Insurance

Performance Bond Insurance:

Nationwide Sureties are the UK’s trusted specialists in sourcing Performance Bond Insurance for construction and infrastructure projects. We work with a wide panel of insurers to find the most competitive premiums and terms tailored specifically to your project, ensuring you meet contractual obligations with confidence.

• Competitive Premiums
• Access to the Full Insurance and Surety Market
• Quick and Simple Application Process
• Expert Knowledge of Performance Bond Insurance
• ABI, On-Demand, Adjunction, or Hybrid Wordings Considered

What is Performance Bond Insurance?

Performance Bond Insurance is a financial guarantee issued by an insurer or surety company to protect the project owner (employer) against losses if the contractor fails to meet its contractual obligations. Typically valued at 10% of the contract sum, this insurance acts as security, ensuring that the project can continue or be compensated in the event of contractor default, insolvency, or non-performance. It is a crucial requirement in most large-scale construction and infrastructure contracts in the UK.

How Does Performance Bond Insurance Work?

With Performance Bond Insurance, the contractor secures the bond from an insurer or surety, paying a premium based on the bond value and their financial standing. If the contractor fails to deliver on the project, the employer can make a claim against the bond. The insurer will then investigate the claim, and if valid, pay out up to the bond amount to cover damages or losses, while often seeking to recover costs from the contractor through indemnity agreements.

What We Require for Performance Bond Insurance:

To arrange your Performance Bond Insurance, please provide:

• Details of the contract, including bond amount and required period
• A completed application form
• A copy of the bond wording (If not specified, we can recommend suitable wording)
• Your latest published accounts (including group accounts if applicable)
• Your most recent management accounts (up to the latest quarter)

Once we receive this information, your Performance Bond Insurance application will be submitted to our panel of underwriters. They will assess your financial strength and project obligations before offering competitive terms.

Upon acceptance and provision of any additional information requested, we will send out the security documents (such as a deed of counter-indemnity) along with the premium invoice. After receipt of completed paperwork and payment, we will issue your Performance Bond Insurance.