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.
- Service sector companies (e.g. street cleaning, payroll, leisure and catering).
- Local authorities
- Government bodies
- Other public sector bodies.