Bonds and Legal Indemnities
Although bonds and legal indemnities are provided by the insurance market they are not really insurance contracts but a form of guarantee. This product is also known as financial guarantee insurance. The following is a list of the more common types of bond and a brief description of their use:
These are very often required by the employers of contractors to ensure that they (the employer) have some funds available to cover the additional costs to which they may be exposed should the contractor become insolvent.
Revenue and Custom Bond
These provide a guarantee to HM Revenue & Customs for the payment of duty and are particularly useful where goods are held in a bonded warehouse.
A retention bond is a guarantee given in place of money that would otherwise be held as a retention.
Road and Sewer Bond
Road and sewer bonds are given to the owners of roads and sewers that statutory obligations in respect of the construction are fulfilled.
Where there are restrictive covenants and rights affecting land or property commonly arising due to lost deeds. The loss arises when a breach of restrictive covenant has occurred and the beneficiaries of the covenants/rights seek to enforce the same against the insured.
Rights of Access
Where there is no legal grant of a right of way to and from the property. The loss arises because the legal owner of the access way may seek to prevent the rights being exercised.
These are just a few examples of the areas where we can help. Give our experienced staff a call to see if we can solve your problem.