The policy indemnifies the principal against the defaults of the insured. The following factors will be taken into consideration in granting this cover.

(a) Financial standing of the company – usually three (3) years Audited Accounts required

(b) A counter guarantee to be signed by a third party acceptable to the company is to be lodged with us.

(c) A collateral security is to be deposited with the company by the applicant or guarantor for the duration of the bond.

(d) A counter is also to be furnished.