Type: Corporate Insurance | Category: Surety Insurance
Learn more about the Advance Payment Bond policy.
This bond guarantees that the contractor will properly use the advance payment made by the project owner and will refund it if contractual obligations are not met.
Advance Payment Bonds assure the owner that the contractor will utilize the advance strictly for project purposes. Misuse or default leads to recovery through the bond.
If the contractor misuses or fails to repay the advance as per contract terms, the insurer reimburses the project owner. It ensures financial discipline and proper mobilization of resources at project start.
Contractors availing upfront mobilization funds, EPCs in road, rail, power, or irrigation sectors, Companies working on World Bank or ADB-funded projects.
Request a free consultation for the Advance Payment Bond policy.
