- Fidelity Guarantee Insurance
A fidelity guarantee policy indemnifies the insured against losses suffered as a result of fraud or dishonesty committed by the insured’s employees. Most companies take the policy to cover employees holding positions of trust.
- Bonds Insurance
The purpose of bond or financial guarantee is to compensate third party in respect of loss suffered as a result of the failure of the insured to perform a task described in the insured contract. There are several types of bond insurances as follows:
- Performance Bonds – Performance bonds are used when a contract fails to complete contractual work as per contract.
- Bid / Tender Bonds – Bid or tender bonds are used when the cost of new tendering has to be incurred, should the highest bidder fail to take up an offer.
- Immigration / Security Bonds – Immigration or security bonds are issued to non- Kenyans whose conduct the insurer guarantees. Should one fail to be of good conduct, the insurance company undertakes to pay the cost of deportation/ or the consequences of her or his bad conduct. Kenyans living in foreign countries are also required to secure such bonds.
- Court Bonds – Court Bonds are used when a court has the responsibility of administering the affairs of persons unable to do so for themselves for some reasons. The court appoints a receiver to administer the affairs of the person or the person’s estate. The court asks the receiver to provide a bond that will take care of any mal administratrion that might take place.
- Customs / Imports Bonds – Customs and imports bonds ensure that dutiable goods on which duty has not been paid do not find their way into the local markets. Should the goods find their own way into the market, the insurer will meet the duty payable by the insured. Custom bonds are given for goods in transit through the country or for those produced in duty free zones targeting the export markets. Import bonds are given to cover duty for goods imported into the country.
- Ware House Bonds – Bonded warehouses are premises where dutiable goods are deposited. Ware house bonds guarantee payment of duty when goods leave the warehouse.