Business Insurance

Bonds Insurance

Helps your business meet tender requirements by guaranteeing performance and compliance. It builds trust with clients and partners, giving you a competitive edge in securing contracts.

 

What’s protected

  • Your buyers’ advance payments with an Advance Payment Bond
  • Your ability to bid competitively with a Bid Bond
  • Your compliance with customs regulations with a Customs Bond
  • Your performance on awarded contracts with a Performance Bond

Each bond can be taken on its own to meet a specific obligation or bundled to give your business full protection across the tendering and contract cycle.

What’s covered

Advance Payment Bond
  • Guarantees that advance payments from buyers are used strictly for the intended project
  • Protects buyers against misuse of funds by the seller
  • Provides compensation if the seller defaults on contractual obligations

Bid Bond
  • Ensures bidders are financially and technically capable of executing a project
  • Protects project owners against losses if a winning bidder withdraws or defaults
  • Strengthens the credibility of the bidder during the tendering process

Customs Bond
  • Guarantees compliance with Tanzania Revenue Authority (TRA) requirements
  • Covers duties, taxes, and penalties that may arise if a business defaults
  • Provides assurance that imports and exports will follow customs regulations

Performance Bond
  • Ensures contractors deliver projects as per agreed terms and timelines
  • Protects project owners from financial loss if a contractor fails to perform
  • Guarantees compensation to project owners in case of default or non-performance

Key things to know

  • Bonds are tied directly to the terms of the underlying contract; if the contract changes, the bond may not apply
  • Fraud, intentional misconduct, or collusion by the bonded party are excluded from cover
  • Claims must be reported to us immediately
  • Standard policy terms and conditions apply

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