Completion Bonds: Protecting Projects from Risk

A completion bond is insurance that a specific project, typically large and expensive, will be completed by a particular date despite any negative external factors. For example, completion bonds are popular in the entertainment industry where financing and other factors are subject to immediate and drastic change. With a completion bond, investors in a particular film know a third party financier has agreed to pick up the bill if the original financing is not sufficient to cover expenses. In return, the film or other entity using the completion bond pays the financier a premium.