When tendering for major projects you may need to provide third-party protection to customers or employers against breaching your contractual obligations. That’s where we come in.
What is a Surety Bond?
A surety bond or guarantee is a promise to pay one party (the beneficiary or employer) a certain amount of money if a second party (the principal or contractor) fails to meet an obligation, such as fulfilling the terms of a contract. The surety bond protects the beneficiary/ employer against losses resulting from the principal’s/ contractor’s failure to meet that obligation. Surety bonds are most commonly found in the construction industry, where the employer needs some financial comfort that a project will be completed.
QBE SME Surety
QBE has formed a partnership with Evo Surety to service UK companies and brokers. Evo Surety can issue bonds up to £1,500,000 on behalf of QBE.
Bonds offered
QBE has authorised Evo Surety to issue the following types of bonds on behalf of QBE UK Limited. QBE UK Limited has an insurer financial strength rating of A+ from S&P.
- Performance Bonds
- Advance Payment Bonds
- Retention Bonds
- Section Bonds
Our agreement with Evo Surety operates as follows:
- Maximum Single Bond Value: up to £1,500,000 (dependent on risk assessment)
- Maximum Aggregate Bond Value per client: up to £1,500,000 (dependent on risk assessment)
- Maximum Duration: up to 4 years (dependent on risk assessment)
- Regulatory Domicile: United Kingdom
- Rating: S&P A+ Rated
- Broker Commission: Up to 20%
- Target Turnaround: 48 hours
- Wordings: Conditional on-default wordings preferred
- Typical Security: Corporate Counter Indemnity and Director Personal Guarantees
- Minimum premium: £750 plus an admin fee of £295
