It indemnifies the principal against the defaults of the insured. The following factors will be taken into consideration in granting this cover.
Types of Bonds:
Bid/Tender Bonds: It is a guarantee to the Principal that the contractor having submitted the accompanying bid for the contract in question shall not withdraw such bid for any reason if the contract is awarded to him.
Performance Bond: This cover is against failure of contractors to perform and it also provides a remedy for failure to perform according to specification. Performance Bond is presented when contractors are called upon after bids have been accepted.
Advance Payment Bond: Where a percentage of the contract value is to be given to the contractor to start work, the insurance bond would be issued against failure to utilize the advance payment/mobilization for the execution of the project.
Customs / Excise Bond: This guarantees that duties are paid on goods exported or imported before they are cleared by custom agents.
Indemnity of Share Certificate: This guarantees the value of shares certificate lost in transit to the owner of the certificate.
Money Insurance: It covers cash and other forms of money, e.g. cheques, traveller’s cheques, bills of exchange, etc., against loss from business premises and during transit. Cover can also be provided for cash in safe and can also be extended to include damage to safe. Money in personal custody of senior employees as float can also be covered.
Fidelity Guarantee Insurance
It covers you against any acts of fraud or dishonestly committed by your employees holding positions of trust during the period such employees are guaranteed or during the uninterrupted service of such employees in the capacity aforesaid.
The following information may be required:
- Total number of staff to be guaranteed
- Limit any one guarantee
- Aggregate limit any one year