Performance Bond are generally used in the construction and services industries. They are also used frequently in the financial trading markets. In trading markets, performance bond stand for a collateral deposit for securing a futures contract (margin). A performance bond is usually issued by a bank or an insurance company, both of which act as a "surety".
Because there are tens of thousands of surety bond variables, it can be very confusing figuring out exactly what the risk and obligation might be. Having a surety professional is extremely important to best protect yourself and your company. Not having your surety relationships stable and appropriate can be devastating to a business that is caught off guard when terms change dramatically because of an agent that does not have the expertise to manage all scenarios your surety needs might create.
Benefits of Performance Bond ensure that:
- The owner of a project is assured of the completion of the project.
- The owner does not need to obtain extra costs.
For more information on all of our surety programs click here