Contract Bond Insurance

Contract bond insurance, also known as surety bond insurance, provides financial guarantees to one party (the obligee) if the other party (the principal) fails to fulfil their obligations under a contract or agreement. With rapid economic growth in terms of infrastructure and new building construction in Cambodia, contractors (principals) need to invest significant capital, time, and preparation to complete projects. Choosing contract bond insurance with PPI (Surety) can help you fulfil a contract or obligation within the bond value limit.

A contract bond insurance policy typically includes the following types of bonds:

  • Performance Bond: Ensures the contractor completes the project according to the contract terms.
  • Advance Payment Bond: Guarantees the repayment of advance payments made to the contractor if they fail to fulfil the contract.
  • Retention Bond: Covers the retention money withheld by the obligee until the project is completed satisfactorily.
  • Bid Bond: Assures that the contractor will enter into the contract at the bid price and provide the required performance and payment bonds.
  • Maintenance Bond: Ensures that the contractor will correct any defects in workmanship or materials discovered during the maintenance period.

With extensive experience and strong relationships with rating reinsurers, having Contract Bond Insurance from PPI provides a comprehensive risk management solution for construction projects and contractual agreements. This gives principals peace of mind knowing their projects are protected.

To file a claim under a Contract Bond Insurance policy with PPI, follow these steps:

1.     Notify PPI Immediately: Contact PPI as soon as you become aware of any potential default or failure to fulfil contract obligations by the principal.

2.     Document the Incident: Provide detailed documentation of the incident, including contracts, correspondence, and any other relevant information.

3.     Submit a Claim Form: Complete and submit the claim form provided by PPI. Ensure all required information and supporting documents are included.

4.     Cooperate with the Investigation: Cooperate fully with PPI's claims adjuster during the investigation process. This may include providing additional information or access to relevant documents.

5.     Settlement: Once the investigation is complete, PPI will process the claim and provide a settlement based on the terms of the bond.

The claim form required to file a claim under the Contract Bond Insurance policy with PPI should include the following information:

  • Policyholder's details (name, address, contact information)
  • Description of the incident (date, time, location, and nature of the default or failure)
  • Details of the contract and obligations (description, value, and parties involved)
  • Supporting documentation (contracts, correspondence, financial statements, etc.)
  • Witness statements (if applicable)

Ensure all sections of the claim form are completed accurately and thoroughly to facilitate a smooth claims process.


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