In dealing with construction projects, the terms "Bonds" and "Bank Guarantees" often come up. Bonds and bank guarantees can offer different facilities, and it is important in making financial decisions that these differences can be discerned. Making the best decisions for your unique circumstances requires an understanding of the way bond insurance operates and how it can be used to achieve a variety of your financial goals as well as a sense of how bond insurances are priced, the dynamics that drive the market and the various risks involved for you whether you are a contractor or a developer. This guide, intended as an introduction to Bond Insurance for interested parties offers information on the three main types of bond insurance, as well as tips useful to making a decision on purchasing bond insurance.What Bond Insurance Required:
Bond Insurance adds several value-enhancing features to those who are involved in a construction project:
Essentially whether you are a Contractor or a Beneficiary such as project owner, developer, or promoter you are indeed better off having an insurance product as opposed to taking the traditional route of having a bank guarantee.
NOBLE Insurance Broker has arranged many such Performance Bond, Surety Bond and Warranty Insurance from local market in Dubai, UAE and International market.