Surety & Guarantee
Research shows that many organisations solely utilise their bank to provide bonds and guarantees without fully appreciating that such products can also be obtained via the surety market.
A surety bond is a financial instrument through which an insurance company guarantees the successful performance of an Aon client to a third party, known as a beneficiary or employer. It is a written agreement that provides compensation in the event that specified obligations are not performed within a stated period.
Companies are taking advantage of surety facilities as either their sole provider of bonds or as a complementary part of their bonding arrangements. Companies are recognising that generally, bonds provided by a surety company are unsecured, thereby releasing valuable working capital facilities.
Surety bonds can be used in a variety of sectors including:
- Support services