What are Bonds
Bond insurance is a type of insurance whereby an insurance company guarantees the principle payments of interest in the event of a payment default by the assured.
- Bid Bond
A bid bond guarantees the principle (project owner) that the insured (contractor) will comply with a bid contract. A bid bond assures the principle (project owner) that the insured (contractor) has the ability to complete a project to the specifications outlined in the submitted bid.
It pays out to the principle should the insured back out from a bid after the work has been won.
- Performance Bond
A performance bond is a surety bond that protects the principle (project owner) against an insured’s (contractor) failure to complete a project as agreed. Performance bonds effectively “bond” specific agreements outlined in a construction contract. If the bonded obligations aren’t met, the principle can claim financial damages. Performance bonds are typically required as part of a bid bond.
- Customs Bond / Regional Customs Transit Bond
A Customs Bond is “a contract which is given to ensure the performance of an obligation imposed by a law or regulation.” The parties involved in the bond contract are the importer (insurer), Surety Company (insurance company) and obligee (CBP) Customs and Border Protection.
The primary purpose of a Customs Bond is to guarantee the payment of import duties and taxes, as well as to assure compliance with all laws and regulations governing the entry of merchandise from foreign shipping points into the Uganda.
- Advance payment bond
If the Principle agrees to make an advance payment (sometimes referred to as a down payment) to a contractor/supplier, a bond may be required to secure the payment against default by the contractor/supplier. This is referred to as an Advance Payment Bond (APB).
Typically on a construction project an advanced payment bond will be required by the principle if the contractor requests advance payment to help them meet significant start up or procurement costs that may have to be incurred before construction begins.
Other types of insurance cover
You will need contents insurance, sometimes known as all risk cover, for items for which you require cover out with the home. Please provide details of these items at the time of quotation to ensure that the policy provided meets with your requirements.
Accidental Damage cover provides protection against costs incurred through damage that you, your family members or visitors may cause to the structure of your Building or to your Contents. Examples of incidents which would be covered under this extension include putting your foot through the loft floor damaging the ceiling below, leaving a tap running leading to water damage or carpet spillages. Such incidents would not be included under a policy taken out to cover Standard Perils only.
Additional charges will apply and in certain circumstances this cover might not be available.
Items kept in the garage or garden sheds will be covered under the Contents section of your policy provided you have included their value in the total sum insured declared. Limits may apply to the amount that can be claimed for theft of items taken from outbuildings and additional charges may be made for certain items such as ride on mowers. Cover for motor vehicles and motorcycles is excluded. Please declare your requirements for cover kept in outbuildings at the time of quotation to ensure that the policy provided meets with your requirements.
In most cases you will need to arrange cover for your own contents and personal possessions. Please refer to your tenancy agreement to check what, if any cover is provided by your landlord.
An excess is the amount a policyholder is required to pay towards the cost of any claim. You may be asked to pay this amount to a company that has carried out repairs on behalf of your insurer, or alternatively the sum will be deducted from any settlement received.
- Ensure you declare a list of items to be insured under contents insurance including serial numbers, model, make and have the correct sum insured
- Always keep valuables safely and locked out of site to protect against the risk of theft