Bonds insurance is made for businesses that are looking to win tenders and manage their contractual risks.
| How it helps | |
| Advance Payment Bond | – Protects the buyer that intends to makes an advance payment to the seller – Instils confidence in the buyer as the bond guarantees that the seller will use the advance payment as per its contractual obligations – If the seller defaults, the buyer can use the bond to be compensated and minimise its losses |
| Bid Bond | – Protects the project owner that intends to award a tender to the bidder – Instils confidence in the project owner as the bond guarantees that the bidder will be able to undertake the project if awarded the tender – If the bidder defaults, the project owner can use the bond to be compensated and minimise its losses |
| Customs Bond | – Protects the Tanzania Revenue Authority (TRA) that intends to allow a business to import or export goods – Instils confidence in TRA as the bond guarantees that the business will comply with customs laws when importing or exporting goods – If the business defaults, TRA can use the bond to be compensated and minimise its losses |
| Performance Bond | – Protects the project owner whose project is being implemented by a contractor – Instils confidence in the project owner as the bond guarantees that the contractor will implement the project as per its contractual obligation – If the contractor defaults, the project owner can use the bond to be compensated and minimise its losses |
