What is a collateral warranty?
Collateral Warranty is a term to describe an additional contract usually between a contractor or subcontractor and another interested third party.
The purpose of the warranty is to provide additional security for other parties involved in a construction project but who are not directly linked to the parties delivering it. The warranty gives the third party the right to sue the warrantor.
We have a helpful free guide that you can read on this subject Guide To Collateral Warranties (and Professional Indemnity).
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