Performance Bond Insurance

We are experts in arranging Performance Bond Insurance and guarantee facilities that enable you (the principal) to enter tenders and projects where there is a contractual need to provide the third party with a financial guarantee.

Get performance bond guarantees to provide financial security.

Performance Bonds are not an insurance policy per se; they are a financial instrument provided by an insurer that provides the Beneficiary (or the contractee or obligee) with a financial sum should your business (the Principal or Sub-Contractor) default on your contractual obligations.

They are usually found within construction-related contracts and included in the risk management strategy, ensuring the project can still be finished.

The terms of the performance bond are determined within the contract and tender documentation, but also by the insurer (the surety) in terms of what they are comfortable underwriting. Our team can negotiate on your behalf for insurer terms more suitable to your needs.

Our expert bond brokers have been arranging performance bonds for many years and have relationships with insurers who can provide Performance Bonds; you can be confident your financial obligations can be granted, allowing you to enter the tender process.

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What does Performance Bond Insurance cover?

We arrange for Performance Bond Insurance guarantees for our clients:

Advance Payments

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. This is referred to as an advance payment bond (APB), advance payment guarantee or advance stage payment.

Performance

Mostly used in the construction and service industry, and is a percentage of the contract value and provided to an employer against loss or damage in the event of a contractor or supplier failing to perform the terms of the contract.

Restoration and Reinstatement

Mostly used by Waste management, quarrying and mining/extraction companies, these are a required by a local authority or the Environment Agency, guaranteeing the restoration of land to agreed standards after work has been completed.

Retention

Road and Sewer

Used in Planning, Highways Roads and Sewer Bonds, these are normally utilised by Property Developers or House builders, as guarantees on behalf of a property developer or house builder that it will complete the roads and sewers to enable them to be adopted by the appropriate local authority under the relevant Highways Act or Water Industry Acts.

VAT & Duty Guarantee

These guarantees cover the payment of Duty & VAT due to HMRC which provides them with protection against payment default or company insolvency.

Why use Jensten

Dedicated

A specialist team dedicated to our Professional Clients

Trusted

We are the trusted broker for Transactional Risks

Flexibility

Tailored insurance to the needs of your business

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Our team of UK-based insurance experts are here to help, Monday – Friday, 9am – 5pm.

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What our clients say...

What are Performance Bonds?

A financial guarantee by way of performance bond and other third-party guarantees can be a necessary requirement when companies in the construction and structural engineering industries need to ensure contractual obligations are met.

Failure to provide the right financial guarantee can lead to disqualification from the bidding process on any tender.

Performance Bonds provide a guarantee to the employing party for a contractor or sub-contractor defaulting on their contractual obligations. It is becoming more frequent that principal contractors now require a performance bond from their sub-contractors before awarding them a contract.

Parties to a Performance Bond.

A performance bond is an agreement between three parties, as explained below.

The principal (usually a contractor), is the person or company who is providing a service.
The obligee is the party that is paying the principal to perform certain work.
The surety is the party that provides a performance bond to guarantee that the principal will complete their work. In the event of a partial or total failure by the principal. the surety will pay any additional costs for completion, up to the limits of the performance bond.

For some tailored insurance help, please contact the Jensten Motor Trade team today or call them on 0208 298 2100.

Need Performance Bond Insurance?

For comprehensive Performance Bond Insurance

Performance Bond Insurance

Construction bonds are a regular feature in large or publicly funded contracts, but the demand for this protection has risen exponentially during the last 12 months.

There are many reasons for this, but the main one is the current economic climate has led many employers to include bonds as a contractual requirement for bidding contractors.

Because it provides a mechanism for protecting the project from external influencers that can lead to the Principal and/or sub-contractors not completing their obligations, i.e. insolvencies.

There’s no doubt that securing a bond is an influential factor during the construction contract bid selection process, and some contractors now consider bonds an essential new business acquisition tool.

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Expertise And Insurance

Performance Bond Insurance

We are experts in arranging Performance Bond Insurance and guarantee facilities that enable you (the principal) to enter tenders and projects where there is a contractual need to provide the third party with a financial guarantee.

Get performance bond guarantees to provide financial security.

Need Performance Bond Insurance?

For comprehensive Performance Bond Insurance

What does Performance Bond Insurance cover?

Advance Payments

Performance

Restoration and Reinstatement

Retention

Road and Sewer

VAT & Duty Guarantee

Why use Jensten

Dedicated

A specialist team dedicated to our Professional Clients

Trusted

We are the trusted broker for Transactional Risks

Flexibility

Tailored insurance to the needs of your business

Talk to the experts

Online

Phone

FAQs

What our clients say...

What are Performance Bonds?

Parties to a Performance Bond.

Need Performance Bond Insurance?

For comprehensive Performance Bond Insurance

Performance Bond Insurance

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