What is surety bond insurance?
Who provides the surety bond insurance?
A -
AM Best Credit Rating
3.1 bn
Gross Written Premium
45 +
Years of Experience
“Fortegra is the registered service mark of The Fortegra Group, Inc. and is the marketing name for the global insurance operations of its affiliated and subsidiary insurance companies. Insurance products are issued by Fortegra Belgium Insurance Company NV is an insurance company authorised under code 3251 and regulated by the National Bank of Belgium, registered in the Crossroads Bank of Enterprises under Company Number 1007.742.896 with its registered office as Bastion Tower, Level 11, Office 1131, Place du Champ de Mars 5, 1050 Brussels, Belgium.”
Types of surety bond insurance
A bid bond ensures that, in the event the tender is awarded:
- the contract will be entered into, and
- the required performance security will be provided,
- or any resulting losses will be compensated.
Bid bonds are most commonly required in public procurement and competitive tender procedures.
A performance bond protects the beneficiary against financial loss if the contractor or service provider:
- fails to perform contractual obligations,
- performs obligations improperly,
- breaches agreed contractual deadlines, or terminates the contract in breach of its terms.
An advance payment bond ensures that advance payments received under a contract are:
- used in accordance with the contract terms, or
- repaid to the beneficiary if contractual obligations are not fulfilled.
A warranty (maintenance) bond applies after completion of the works and secures the contractor’s warranty obligations during the agreed warranty period, including defect rectification in accordance with the contract terms.
Surety bond terms and conditions
Surety bond terms and conditions
PDF
When is surety bond insurance required?
Surety bond insurance is commonly required:
- when participating in tenders and public procurement procedures;
- for construction, supply, and service contracts;
- when contracts require advance payments;
- to secure obligations during the warranty period.
It enables businesses to strengthen trust with their customers and reduce financial risk.
How is a surety bond issued?
- You submit a request to the Masterisk team.
- A risk assessment is carried out based on the project, contract terms, and business profile.
- Insurance terms and pricing are proposed.
- The surety bond document is issued, most often on the same business day once all required information has been received.
Other questions
Learn moreWhen is surety bond insurance required?
Surety bond insurance is commonly required:
- when participating in tenders and public procurement procedures;
- for construction, supply, and service contracts;
- when contracts require advance payments;
- to secure obligations during the warranty period.
It enables businesses to strengthen trust with their customers and reduce financial risk.
How is a surety bond issued?
- You submit a request to the Masterisk team.
- A risk assessment is carried out based on the project, contract terms, and business profile.
- Insurance terms and pricing are proposed.
- The surety bond document is issued, most often on the same business day once all required information has been received.
Kodėl verta rinktis Masterisk?
- A dedicated surety bond team
- Fast, tailored solutions
- Patikimas tarptautinis draudikas – Fortegra Belgium Insurance Company NV
Masterisk, UAB veikia kaip laidavimo draudimo MGA (Managing General Agent) pagal draudiko deleguotus įgaliojimus. Masterisk, UAB nėra draudikas ir neprisiima draudimo rizikos – draudimo riziką prisiima draudimo bendrovė.