What is Bonds Insurance ?
Bond insurance, also known as financial guarantee insurance, is a type of insurance policy that provides a guarantee or protection to investors against default or non-payment of interest or principal on bonds issued by corporations, municipalities, or other entities.
Guaranteed Bonds
Guaranteed bonds are types of bonds that are paid by parties other than those that issued the bonds. A bond is a debt security that represents money the issuer owes the holder. Bonds have individual terms, but in essence, they consist of principal and interest. While principal is the original amount, interest is an additional amount at a fixed rate, which serves as compensation for the borrowed amount. Interest is paid at specific times agreed upon by both the issuer and holder, and when the bond comes to maturity, the full amount of principal plus interest is due.
Performance bond
They are commonly used in the construction and development of real property, where an owner or investor may require the developer to assure that contractors or project managers procure such bonds in order to guarantee that the value of the work will not be lost in the case of an unfortunate event (such as insolvency of the contractor). In other cases the client is guaranteed compensation for any monetary loss up to the amount of the performance bond.
Bid Bond
Bid bonds are guarantees from contractors that state they will do the job they are bidding to do, if they are awarded the contract. Typically, the bid bond is required as part of the construction bid process. It protects the person asking for bids in the case that the contractor chosen is not able to perform the work. While there is often very little financial gain to the owner of a project, it does encourage contractors to make sure their bids are valid.
We Also Offer Advance payment Bond
Guarantee supplied by a party receiving an advance payment to the party advancing the payment. It provides that the advanced sum will be returned if the agreement under which the advance was made cannot be fulfilled. Also called advance payment guarantee.
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If you import or export goods to or from Ghana, you’re legally required to pay customs duty immediately as the goods enter or leave the country. The Ghana Revenue Authority, acting on behalf of the Government of Ghana, will allow duty payments to be deferred if there is a guarantee in place from a reputable insurance company. A Customs Bond from Priority Insurance is a guarantee against any loss of revenue arising from the failure, default or non-compliance by your company in terms of your obligations to Customs when it comes to export/import duties.
Motor Insurance
Loss of or damage to any vehicle described in the schedule and
read moreGoods In Transit Insurance
Goods In Transit Insurance - Loss of or damage to the whole
read moreFire Insurance
A basic Fire policy insures damage to tangible property due to fire,
read moreMarine All Risks Insurance
This policy insures items such as plant and equipment, finished goods, and
read moreAssets All Risks Insurance
This policy offers broader cover than that available in a basic Fire
read moreBusiness Interruption Insurance
The Business Interruption policy can insure the project company for loss of
read moreA Bond Insurance from Priority Insurance is a guarantee against any loss of revenue arising from the failure, default or non-compliance by your compan.. Fill the Form Below and an Expert Will Get In Touch
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We Also Offer The Below Bonds
Overall, our bond insurance plays a crucial role in the bond market by providing investors with added protection and enhancing the marketability of bonds issued by entities with lower credit ratings. It helps promote investor confidence, liquidity, and stability in the bond market.
Supply Bond
A bond between a supplier and purchaser which guarantees the supplier will furnish supplies or materials as contracted. Should the supplier default, the surety will indemnify the purchaser of the supplies against any loss sustained as a result.
Transit Bonds
This is a guarantee given to transporters of imported goods destined for a neighbouring country where the transporter hasn’t paid their customs duties. It covers them if the goods do not reach the stated destination, which can lead to a loss of revenue for the state.
Customs Bonds Policy
Customs Excise and Preventive Service (CEPS) may require certain bonds from you in the course of your import and export business; we would provide you with any such bond whenever demanded
Warehousing/Security Bonds
This bond is granted to importers whose goods are kept at a licensed bonded warehouse(s), pending payment of their import duties. If the importer defaults or fails to pay customs duties and taxes eligible on these goods at the bonded warehouse, the guarantor will pay Customs these lost duties.
Maintenance Bond
These are often required after construction to guarantee the performance of contracts. The role of a maintenance bond is to protect against design defects and/or failures in workmanship, and to guarantee that facilities constructed under a permit will be regularly and adequately maintained throughout the maintenance period. Maintenance bonds are often for a limited amount of time, at which time the responsibility for facility upkeep must be transferred to either a private party or to the local government. Due to the limited time-frame of maintenance bonds, they are often not a solution to ensure long-term maintenance.
Surety Bonds
A surety bond is a contractual agreement among at least three parties: The Obligee - entity that requires the bond. Obligees are typically government agencies working to regulate industries and reduce the likelihood of financial loss. The principal - the primary party who will perform the contractual obligation (or the job). The surety - the insurance company that backs the bond. The surety provides a line of credit in case the principal fails to fulfil the task. Examples of such Bonds are Bid Bond and Performance Bonds.
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