Our Claims Team has in-depth technical expertise and many years of experience of dealing with even the most complex claims. We are commercial in our approach and aim to minimize the impact of any claim on your business.
We work closely with our underwriting colleagues – enabling us to take a fully informed view of your circumstances – and our claims handlers are empowered to make decisions, allowing us to provide a flexible, responsive service.
Surety bonds provide protection for the Principal in a contract (the Beneficiary) against the default of the Contractor. It’s an undertaking by an independent third party, “the Surety” (HELMET SECURITIES LIMITED), to the Obligee that you will meet the terms and conditions of the contract. So a surety bond involves three different parties: The Obligee requires the surety bond from the Principal and the Surety guarantees that the Principal will perform its obligations to the Obligee as contained the contract. The Principal pays for the cost of the surety bond.
Surety bonds are irrevocable instruments payable upon demand. They are unsecured and as such we undertake a detailed underwriting assessment before establishing your facility limit. We seldom provide one-off bonds but rather establish a facility that you can draw down on when needed.
A surety bond is very similar to a bank guarantee with the exception that it’s underwritten by an insurance company. Our recourse is through a Deed of Indemnity that is executed once the facility is established. The Deed of Indemnity is our recovery document and in the unlikely event of a claim occurring, we will seek recourse through our client (you).
The need to provide guarantees to secure performance and other security requirements can be a major obstacle for contractors tendering for projects. In many cases, they have pledged all available security to a financial institution and may have reached capacity within its agreed facility limit. As surety bonds are generally unsecured they can enhance your working capital and liquidity position without the need to provide tangible security.
The advantages of a surety bond facility can be easily demonstrated using the example of a contractor with a net worth of $3 million winning a contract for $30 million and being required to lodge a bond for $3 million (10% of the contract value). Traditionally, a financial institution would require the contractor to either place at least $3 million on deposit or effect a mortgage/debenture over assets of similar value. As surety bonds are generally unsecured, the contractors’ assets remain unencumbered and working capital is released to fund future contracts.
Our bonds are widely accepted by Federal, State and Local governments as well as large publicly traded companies and private enterprises.
A Deed of Indemnity and Guarantee is our recourse document in the unlikely event of a claim. The security involved will depend on the individual circumstances of your company.
Our analysts look for specific qualities:
The only cost involved is a fee for the establishment of the Deed of Indemnity and Guarantee.
Yes. The cost is payable upfront before we issue the bond.
It depends on the specifics of your application, including the bond value, the bond rate and the duration of the bond.
As long as the project tenure. We are able to gain special acceptance from our reinsurers to go issue bonds for an indefinite amount of time.
Once your facility has been established a bond can be issued and delivered within 24-48 hours of receipt of your application.
We’ll pay brokerage, however the amount will depend on the volume of business and level of involvement of your broker. Should we deal with you directly then no brokerage is payable.
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