Bid Protest Insurance launched by I-Square Ventures and William R. Carey & Company protects government contractors from the threat of bid protests
WASHINGTON, March 20, 2019 /PRNewswire/ -- Bid protests have plagued the government contracting industry for decades and are expected to escalate as competition for contracts increases. With more competition comes more exposure to the catastrophic business risks of a bid protest.
"We were recently threatened by a competitor with a bid protest. Our young company put everything on the line to win government contracts, but with a protest looming, we had to focus our scarce resources on keeping the company alive, instead of concentrating on contract performance. Bid protests are often misused by large prime contractors to stifle competition from small businesses like ours. Having bid protest insurance definitely protects our risks." - Shaun So, CEO, The So Company (SDVOSB)
Bid Protest Insurance is an innovative insurance product launched by I-Square Ventures, in collaboration with insurance industry veterans William R. Carey & Company and a major insurance carrier rated A (Excellent) by AM Best. It insures and protects government contractors from the threat of bid protests.
A bid protest can force a company to stop work on an award, without compensation, and mounting legal bills, for up to 120 days. And worse, the government will not reimburse the contractor for any costs or legal fees, accrued to fight a bid protest. For one-quarter of one percent of the contract value, Bid Protest Insurance enables government contractors to mitigate almost all of their risks. Coverage includes legal defense costs, and if the contract award is lost as a result of the bid protest, the insurance policy covers direct & indirect costs and wages per the policy wording.
Bid protests are a necessary element of the government procurement process because they provide a forum for appeal if someone believes an agency has violated one of the countless procurement laws and regulations. On the flip side, a bid protest can expose government contractors to grave financial risk.
"As is common while doing business with the government, our recent contract win required us to ramp up quickly after award. Having the protection of bid protest insurance gave us the peace of mind to proceed with hiring and incurring contract start-up costs by removing the financial cost of a protest as an immediate risk factor." -Keith Deaven, CEO, Mediabarn Inc
Media Contact: Mike Carey, 551-264-9900 [email protected]
SOURCE Bid Protest Insurance
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