An Outsourcing Bond or Local Authority Bond is a type of performance bond that is issued to a public sector body, i.e. a local authority, against loss or damage resulting from a contractor/supplier failing to complete the terms of a contract. These bonds provide the beneficiary with the security and comfort of knowing that they can recover any loss or damages they have incurred, up to the bond amount, in such instances.
- Service sector companies (e.g. street cleaning, payroll, leisure and catering).
- Local authorities
- Government bodies
- Other public sector bodies.