CIC Association

Serving Community Enterprise


We are a small CIC in Derby.  We've recently been offered a place on a delivery framework by Derby City Council, but they want us to have an indemnity bond in place in case we default on the contract.  The trouble is I can't find anyone who offers them.  I've tried our regional social enterprise investor, our bank, various insurers but not joy so far.  I really hope someone can help!


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Hi Philippa

That's definitely not an off the shelf product! What does the bond need to mitigate? Redundancy, pension, death in service etc etc. Are staff transferring? Are you taking on existing pension liability? What do you mean when you say default on the contract?

It can be hard to put together, ultimately the bond is an insurance contract so the particular risk will reflect the cost. You basically have to find investors who will take on that risk for a fee. 

Lots of CICs work with Local Govt so not impossible, happy to share what I know if you can give a little more info

Best regards


Hi John

They are being really non- specific!!!  I think they want to cover themselves for if we go bankrupt and can't deliver services - they say they want us to have insurance in place to cover the cost of 2 weeks service for clients plus an admin fee.



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