National Insurance Surety Bond Insurance: Inclusions
The policy provides protection against losses suffered by the beneficiary due to contractual default by the principal.
Key coverage features include:
- Coverage against contractual non-performance.
- Financial protection for project owners and beneficiaries.
- Support for infrastructure and construction projects.
- Alternative security mechanism to bank guarantees.
- Protection through various surety bond structures.
- Risk mitigation for contract-awarding authorities.
National Insurance Surety Bond Insurance: Available Bond Types
Bid Bond
Provides assurance that the bidder will execute the contract upon award.
Performance Bond
Protects beneficiaries against losses caused by failure to perform contractual obligations.
Advance Payment Bond
Provides protection for advances released to contractors.
Retention Money Bond
Acts as security in lieu of retention money withheld under the contract.
Maintenance Bond
Provides assurance during the maintenance and defect liability period.
National Insurance Surety Bond Insurance: Exclusions
The policy generally does not cover:
- Financial guarantee obligations.
- Liabilities outside the insured contract.
- Losses not arising from a covered contractual default.
- Exclusions are specified under the policy wording.
- Obligations not expressly covered under the bond.
For complete details, policyholders should refer to the official policy documentation.