Outsourcing bonds

An outsourcing bond is a type of performance bond that is issued to a local authority or other public sector body against loss or damage in the event of a contractor or supplier failing to perform the terms of a contract. These bonds provide the beneficiary with the comfort that in the event of a failure to provide the contracted services, they will be able to recover the loss or damages they have incurred, up to the bond amount.

Applicant/risk

  • Service sector companies (e.g. street cleaning, payroll, leisure and catering).

Beneficiary

  • Local authorities
  • Government bodies
  • Other public sector bodies.