A surety bond is essentially a promise or an undertaking by an insurer (the Surety) to pay to another party (the Obligee or Beneficiary) an agreed amount in the circumstances set out in the bond wording and in line with an underlying performance based contract.
Surety bonds are an unconditional and on-demand instrument providing an alternative to bank guarantees or retention monies. They are widely accepted in the Australian and New Zealand markets by Federal, State and Local Governments, public and private enterprises.
The bond facility is unsecured with no tangible security or cash collateral required compared to the banks’ secured position. Surety bonds provide certainty around expansion and growth or acquisition targets and allow for greater flexibility as companies can leverage off their capital base, enhancing working capital and liquidity opportunities used and recognised in major trading countries worldwide.
Why choose Gallagher
Local expertise, global strength
Surety bonds specialists that get to know your business
Expertise to explain how surety bonds could address your specific needs
Types of surety bonds
Contract performance bonds
Bid bonds (or tender bonds)
Advance payment bonds
Retention release bonds
Off-site material bonds
Maintenance/defects liability bonds
Workers Compensation bonds
Mining Rehabilitation bonds
Other bonds at the discretion of the Surety provider
Meet the team
Racheal TumeltyNational Head of Credit, Surety ＆ Political Risks