London Surety’ Surety and Bonds Team is led by Tony Gower. Tony has over 35 years’ experience in the Lloyd's Broker Marketplace with over 10 years’ experience providing all types of Surety and Bonds for clients in Europe and Worldwide.
Surety Bonds provide protection to Employers’, both public and private, against Contractors’ and service providers’ inability to fulfil contractual obligations, usually as the result of financial failure. London Surety work with those Contractors and service providers to offer a wide range of Surety Bonds, including Bid Bonds, Advanced Payment Bonds, Performance Bonds, Retention and Maintenance Bonds to mitigate those risks and concerns and guarantee performance.
Example: A Contractor may be required to obtain a Performance Bond to be issued in favour of an Employer for whom the Contractor is constructing a building project. Should the Contractor default on the Contract specifications of the building project (most often due to the bankruptcy or insolvency of the Contractor) the Employer is guaranteed compensation for any monetary loss up to the value amount of the Performance Bond.
Benefits of Surety Bonds:
• Viable alternative to Bank Guarantee or Letters of Credit;
• Improves the Contractors’ liquidity by freeing up working capital (overdraft facility);
• Opens up tender opportunities;
• Transfers the Employers’ risk of a Contractors’ default to a Surety.
Documentation required for Quotation:
• Application forms completed by applicant/Contractor (available on request);
• Contractors’ most recent audited financials (plus management accounts if audit older than 6 months);
• Proposed Bond Form;
• Indemnity Agreement from the Contractor to hold the Surety harmless and indemnify for losses that may arise under Bonds issued by the Surety at the request of the Employer. The principal indemnitor is typically the parent/ holding company and the subsidiary Contractors requiring Bonds and is required on a joint and several basis;
• Collateral may be required by the Surety to support certain risks.
Tony has developed a solid professional reputation in the Surety market which has gained him access to all the major Surety Bond providers in the UK and Worldwide.
In addition to Surety Bonds required by the Construction Industry, Tony has previously provided Surety capacity for the bespoke needs of various clients, including the second largest airline in Germany. Surety capacity support can also be provided on a facultative reinsurance or treaty reinsurance basis.
London Surety can also assist with Financial Guarantee enquiries where a financial institution/lender may require a form of guarantee from a borrower against their loan obligations.