If you are a shipbuilder or shipyard, managing large and costly construction projects, you will often be required to provide your clients with certain guarantees about performance and delivery.
A performance bond provides a guarantee of your performance, under the shipbuilding contract and guarantees, that you will deliver the vessel to your client per the terms of the contract.
If there is a default on the delivery of the vessel, the bond will provide security for your client’s additional costs involved in completing the vessel, up to the maximum value of the bond.
Refund bonds are a vehicle used to reimburse your client for any advance payments made during the project, should you default on your obligation to deliver the vessel. Refund bonds may be issued each time the ship owner makes an advance payment to you throughout the project and prior to delivery of the ship (or other vessel).
Best for
- Shipbuilders and Shipyards
Highlights
- Secures the delivery of ships (and other vessels) under shipbuilding contracts
- Secures the reimbursement of any advance payments in the event of non-delivery
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Why choose Tokio Marine HCC?
Tokio Marine HCC is a leading specialty insurance group with offices in the United States, Mexico, the United Kingdom and Europe, transacting business in approximately 180 countries and underwriting more than 100 classes of specialty insurance.
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