Surety Bonds
Surety insurance can support contractual obligations by providing a guarantee to an obligee that the principal will perform specified commitments, subject to underwriting and bond terms.
Contractual security without a traditional bank guaranteeA different way to support contractual obligations.
Surety is not simply another form of general insurance. It involves assessment of contractual performance, financial capacity and the underlying obligation between principal and obligee.
Tender obligations
Support certain bid or tender-related security requirements where accepted.
Performance commitments
Performance bonds may secure obligations under eligible project contracts.
Advance payment security
Some bond structures may support advance payment obligations.
Underwriting-led
Financial strength, project capability and contract quality are central to underwriting.
Bond structures can vary by contract.
Availability and acceptance depend on the obligee, contract and insurer underwriting.
Bid Bond
Supports eligible tender or bidding obligations.
Performance Bond
Backs specified contractual performance obligations.
Advance Payment Bond
May secure repayment obligations linked to an advance under a contract.
Retention Bond
May substitute for eligible retention money requirements where accepted.
Maintenance Bond
Can support specified post-completion maintenance obligations.
Custom Contract Bonds
Structures may be considered for other eligible contractual security requirements.
Surety starts with the business and the contract.
Insurers generally assess both financial and operational capability.
Financial statements
Audited financials, banking information and working capital position may be reviewed.
Project experience
Past project execution, order book and technical capability can matter.
Contract terms
The underlying contract, bond wording and beneficiary requirements are central.
Existing obligations
Current guarantees, debt and contingent liabilities may be considered.
Management capability
Track record and organisational capacity can influence underwriting.
Claims/credit history
Past defaults, disputes or guarantee invocation history may be relevant.
Understand the protection before you commit.
Insurance decisions are easier when the purpose, trade-offs, exclusions, terms and servicing process are clear.
Requirement
Clarify who or what needs protection and what cover is already in place.
Options
Identify relevant policy structures and insurer options worth comparing.
Terms
Focus on limits, exclusions, deductibles, waiting periods and policy wording.
Support
Stay connected for servicing and claims-related coordination after placement.
Discuss a surety bond requirement
Share the bond type, beneficiary, amount, contract/tender context and timeline. Our corporate team can guide the next steps.
Discuss a surety bond requirement
Share a few details and the relevant Novo team will contact you.