Bond Insurance

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:

  1. With bond insurance, a principal has a backup source of payment to rely on if the contractor cannot meet his obligations.
  2. For the contractor, it comes at a huge cost saving in that he does not have to freeze his capital as in the case of purchasing a bank guarantee.
Why choose a Bond Insurance from NOBLE Insurance, Dubai – UAE:

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.

  1. The bond insurance is provided by NOBLE Insurance Company. The proven track record of NOBLE Insurance Company backed by the strong support of local and international insurers would satisfy the comfort level of the Principals, Developers, Builders who demand a very high level of surety 
  2. We offer professional expertise and assistance in claims handling. If needed, we could procure substitute contractors and satisfy the main goal of the beneficiary, which is to get his project finalised.
  3. A surety bond has no expiry date - unlike bank guarantees, which are always limited in time.
Types of Bonds
  1. Surety Bond

  2. Performance Bond

  3. Advance payment Bond

NOBLE Insurance Broker has arranged many such Performance Bond, Surety Bond and Warranty Insurance from local market in Dubai, UAE and International market.