• Accident & Health
• Affinity Partnerships
• Business Continuity
• Captives
• Caravan Park Owners
• Cargo
• Casualty
• Clinical Trials
• Corporate Recovery
• Credit & Political Risk
• Cyber and IT Risk
• Directors & Officers Liability
• Financiers Insurance Due Diligence
• Global Insurance Management
• Group Life Catastrophe
• Kidnap & Ransom
• Marine
• Performance Bond Enhancement
• PPP / PFI
• Professional Indemnity
• Property
• Public Offering of Securities
• Risk Consultancy
• SME / Commercial
• Specie & Fine Art
• Tenant Risks
• Terrorism
• Wholesale Insurance Services

Performance Bond Enhancement

The ability to issue performance bonds or advance payment bonds can present obstacles to a business operating as an exporter or a contractor.

Typically set at around 20% of the contract value - and payable in the event of non-performance or quality or delivery issues - the process of obtaining bonds can prove prohibitive to pursuing lucrative new business.

Banks willl require collateral before issuing bonds on your behalf and this can be in the form of cash or by treating your bond as part of your credit facility, thus reducing your working capital.

At JLT we have, along with leading insurers and the British Exporters Association, developed Performance Bond Enhancement, a product that consigns this perennial problem to history, providing advantages to both your business and your bank.

Underwritten in the London insurance market, this innovative new policy will indemnify your bank against the risk of your being unable to meet the payment obligation should your bond be called.

Aimed at Basel II compliance, Performance Bond Enhancement's policy wording differs from traditional credit insurance products through an emphasis on a precise, as opposed to conditional, tone. The policy will:

• protect your bank should your business become insolvent and therefore unable to honour the counter-indemnity, whether the bond has been called fairly or unfairly
• provide up to 95% indemnity for up to three years
• allow your cover to be structured pro-rata to the levels of collateral/insurance relative to the overall facility, or in excess of your collateral.

We can also secure your insurers' agreement that all underwriting information you provide at the inception of coverage constitutes a full disclosure. By removing the potential for disputes this will give you additional peace of mind.