Who Is Commercial Indemnity Pty Ltd (“CI”)?

CI is the authorised agent of QBE Insurance (Australia) Ltd for the distribution of Lease Performance Bonds to the Australian commercial, industrial and retail property  markets.

CI is a specialist agency that provides tailor made solutions for those requiring contractual performance guarantees.

CI, in conjunction with the team at QBE Surety, have designed Lease Performance Bonds to meet the requirements of institutional landlords and their tenants whilst removing the limitations associated with traditional forms of security such as bank guarantees.

Who Is QBE Insurance (Australia) Ltd?

The QBE Insurance Group is Australia's largest international general  insurance & reinsurance group, and one of the top 25 insurers and reinsurers worldwide.  QBE Insurance Ltd employs over 6,700 staff in 38 countries and operates in all key insurance markets.  Gross written premiums in 2005 was $9408 million.

 QBE is highly regarded in international insurance markets and is rated A+ by leading ratings agency Standard & Poors.

QBE Surety is a specialist division of QBE dedicated to the provision of surety and performance bonds. QBE Surety provides performance guarantees on behalf of a wide cross section of Australian industry in favour of both private and public entities.

CI and QBE are pleased to introduce Lease Performance Bonds to the Australian property investment markets and invite expressions of interests from real estate leasing professionals, property managers and directly from tenants’ themselves and or their insurance brokers.

What are Lease Performance Bonds?

Lease Performance Bonds are a form of surety or performance guarantee.  They are issued by QBE Insurance (Australia) Ltd on behalf of a tenant in favour of their landlord in lieu of a security deposit on a Lease agreement.

Lease Performance Bonds are NOT a form of insurance.

Unlike insurance, Lease Performance Bonds require a counter indemnity agreement in favour of QBE Insurance (Australia) Ltd on behalf of the tenant.

In the event of a demand under a guarantee by a Lessor, QBE Insurance (Australia) Ltd will pay the landlord on demand any amount up to the face value of the bond without reference to and or irrespective of, any request by the tenant not to pay same.

Under the indemnity agreement QBE Insurance (Australia) Ltd has the right, amongst others, to seek recourse to recover any loss, including costs, from the tenant and its indemnifiers.