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Providen Insurance

Business insurance

Insurance Bonds in Ghana

Bid, performance, advance payment and customs bonds.

In brief

An insurance bond is a guarantee Provident issues on your behalf to a third party — such as a project owner or Customs — promising that you will meet an obligation. Bonds help businesses bid for and deliver contracts without tying up cash in bank guarantees.

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What’s covered

  • Bid / tender bonds
  • Performance bonds
  • Advance payment bonds
  • Customs and excise bonds
  • Retention and maintenance bonds
  • Guarantees to public and private beneficiaries

What’s not covered

  • Obligations you are already in default of
  • Fraudulent or misrepresented applications
  • Amounts beyond the bond's stated value
  • Disputes unrelated to the guaranteed obligation
  • Open-ended liabilities without a defined term

Who it’s for — Contractors, suppliers, importers and service providers bidding for or delivering contracts that require a financial guarantee — in construction, supply, oil and gas and government tenders.

What types of bond does Provident issue?

We provide the bonds Ghanaian businesses need to compete for and perform contracts: Bid (Tender) Bonds that back your tender, Performance Bonds guaranteeing you will complete the contract, Advance Payment Bonds securing money paid to you in advance, and Customs and Excise Bonds for goods in bonded warehouses or transit. Other guarantee types can be arranged on request.

Why use a bond instead of a bank guarantee?

A bond from an insurer typically does not lock up your working capital or banking facilities the way a cash-backed bank guarantee does. That frees your cash to run the project, while the beneficiary still receives a reliable guarantee from a financially strong, NIC-regulated insurer.

FAQs

Frequently asked questions

What is a performance bond?
It guarantees the project owner that you will complete the contract to its terms. If you default, the owner can call on the bond up to its value.
Do I need to provide security for a bond?
Bonds are underwritten on your financial standing and the contract. Some security or indemnity may be required depending on the bond type and amount.
How quickly can a bond be issued?
Once your application and supporting documents are assessed, bonds can usually be issued promptly to meet tender deadlines.

Need to make a claim?

We pay valid claims, fairly and quickly. See the four steps and the documents you’ll need.

How to claim →

With Provident, you’re covered

Get an indicative quote now, or talk to an agent at any of our 11 branches.