Utilising the securest re-insurers in the world backed by A rated security. ICE is dedicated to building a trusting, confidential and secure relationship with its brokers, clients and their principles, re-insurers and support and service providers.
SALIENT FEATURES
- Performance Bonds
- Payment on Demand Bonds
- Maintenance Bonds
- Covering Infrastructure Projects
- Local and regional projects
- Roads, Bridges, Buildings, Hydroelectric schemes,
- Speciality contracts
- Construction of refineries, breweries, industrial projects
- Government and private construction projects
- Customised secure surety solutions
A surety bond is typically used by the construction industry and is defined as a contract between three parties:
- The Principle – the party who is the recipient of an obligation.
- The Contractor – the primary party who will perform the contractual obligation.
- The Insurer who assures the obligee that the principal can perform the task.
ABOUT SURETY BONDS
Surety bonds can be issued by banks in the form of bank guarantees and insures called bonds or guarantees. Surety bonds pay out cash to the limit of guaranty in the event of the default of the contractor to uphold his obligations to the principle, without reference by the principle to the construction company and against the principle’s sole verified statement of claim.
Through a surety bond, the surety agrees to uphold — for the benefit of the principle — the contractual promises (obligations) made by the construction company if it fails to uphold its promises to the principle. The contract is formed so as to induce the principle to contract with the construction company, i.e., to demonstrate the credibility of the construction company and guaranty performance and completion per the terms of the agreement.
The contractor will pay a premium in exchange for the insurer’s financial strength to extend surety. A key term in nearly every surety bond is the penal sum. This is a specified amount of money which is the maximum amount that the insurer will be required to pay in the event of the contractors default. This allows the insurer to assess the risk involved in giving the bond.