As you can see from the article below, performance bonds are being used by more and more companies. This has moved away from strictly the construction business into a more main stream approach as many companies are utilizing multiple different ways to reduce their risk.
Express scripts requiring performance bonds
Express Scripts is now requiring some applicants who wish to contract with them to furnish a $500,000 performance bond for at least the first two years of the contract. This bond, per Express Scripts, “guarantees to the obligee (Express Scripts) that the principal will carry out the performance of their contract according to terms and conditions agreed to by the parties.” Express Scripts may also require that the bond extend beyond the initial two-year period. These bonds are very expensive and difficult to obtain. The cost of such a surety bond depends on the pharmacy and its owners’ creditworthiness, but is still very high, and can easily exceed $15,000.
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