Business Insurance

Bonds

Bonds provide financial guarantees that help your business meet tender, contractual and regulatory requirements. Unlike conventional insurance, which protects against specified losses, bonds provide assurance to another party that certain obligations will be fulfilled. They help strengthen trust and support your business in pursuing new opportunities.

Types of Bonds Available 

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.

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

  • Each bond is issued for a specific purpose and is subject to its own terms and conditions
  • Changes to the underlying contract may require an amendment to the bond
  • A bond claim must satisfy the requirements and conditions stated in the bond
  • The party obtaining the bond may be required to reimburse the insurer for amounts paid under the guarantee

Other Business Insurance Products

All Risks Insurance

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