Questionable coverage.

[mydrivesolong]

A bid and performance bond was issued to a sub- contractor in favor of a general contractor. The sub- contractor did not ever deliver the actual performance bond to the general as the sub and the general could never agree on a contract to sign.

The sub did work for the general. The general later filed suit against the sub and the bonding company.

As a performance bond is tied to a signed contract, is there still exposure on the part of the bonding company to the general?

Thank you.

[Riskwriter]

A similar situation occured with Disney when Disney tried to file a claim on a bond which they did not have the original bond in hand. In fact, they only had the bond #. The surety declined their request stating that no such bond was actually issued- Disney of course sued but ending up losing.

In the end- I do not believe that a copy of a bond will stand as an original in a court of law- then again, anything can be argued.

IMHO