Bonds are often used to facilitate our Client in fulfilling their contractual obligations. Bonds provide legal and financial protection necessary for the parties involved. The contractor secures a bond to guarantee their work will be in accordance with the contract’s terms and conditions.
Bonds are not insurance policies but rather a form of guarantee made usually between three parties. Unlike insurance policies, the contractor indemnifies the insurance company from any loss under the policy and accordingly the insurance company guarantees the performance of the contractor for a given project.
When selecting an insurance company to provide a bond it is important to partner with a company like Maritime General that provides the security that your Client needs.