Why Surety Bonds?
A. The need to provide guarantees to secure performance and other security requirements can be a major obstacle for many contractors tendering for projects. In many cases the contractor has pledged all available security to a financial institution and may have reached capacity within its agreed facility limit. QBE Surety views the contractor’s ability to fulfil its contractual performance obligations as a key underwriting element. Thus, QBE will normally support the obligations of the contractor without tangible security. This allows the contractor to free up funds, reduce debt and/or tender for additional contracts subject to the company meeting underwriting criteria. By comparison, financial institutions place more emphasis on assessing the value of the collateral/tangible security to support guarantee facilities.
