Outsourcing Bonds
Outsourcing Bonds
Applicant/risk
- Service sector companies (e.g. street cleaning, payroll, leisure and catering)
Beneficiary
- Local authorities
- Government Bodies
- Other Public Sector Bodies
An Outsourcing Bonds is a type of Performance Bond that is issued to a Local Authority or other Public Sector Body against loss or damage in the event of a contractor or supplier failing to perform the terms of an outstanding contract. These Outsourcing Bonds provide the beneficiary with the knowledge that in the event of failure by the contractor to complete the contract, they are able to redress the loss or damages they have incurred up to the bond amount