Also referred to as Performance Bond, Builders Bond, Contract Bond & Surety Bond.
I need a bond for an upcoming contract, where can I get one?
Martin Insurance Brokers (as part of Martin Insurance Ltd – est 1980) work with a panel of underwriters who provide these bonds.
Will my company be able to get a bond?
That depends on a number of factors including:
- The financial results of the company over the past number of years. (is it making profits or losses)
- How much retained profit (or losses) are built up in the company since it was established.
- Other security available?
- How large is the required bond?
- A wide range of other factors which will be taken into account by the underwriter.
How much will the bond cost?
For performance bonds the most common rate is circa 1% of the contract value. Although that rate can increase or reduce substantially depending on the financial information presented.
What is the process and how long will it take to get a bond?
- Submit your company accounts and some other forms including a bank information form (which must be completed by your bank).
- You must have up to date audited accounts available – normally no more than 12 months old.
- Underwriters will normally respond within 24-48 hours. They may provide an immediate quotation or request more information.
- Once a quote has been provided, a draft wording will be issued and this is sent to your client for approval.
- The bond will be issued once the client has confirmed they are happy with the draft wording. Also the premium must be paid upfront.
The process normally takes at least a week. The biggest delays are often with the bank information form and because there are no up-to-date audited accounts available.
Who do I contact?
If you would like a quotation, please call us on 049-4332944, e-mail info@martininsurance.ie or complete our online enquiry form.
Disclaimer: The material contained is this article is for general information purposes only and does not constitute professional advice.
