I-Square Ventures in collaboration with William R. Carey & Company has introduced a new insurance offering that protects government contractors from the threat of bid protests.
The new product, Bid Protest Insurance, has been designed to salvage bidders from more exposure to the catastrophic business risks of a bid protest started by competitors.
Bid protests are a necessary tool to check whether an agency has breached procurement laws and regulations.
However, bid protest can also put government contractors to grave financial risk, as it can force a firm to stop work on an award, without reparation, for up to 120 days while increasing legal bills make the situation worse for them.
Meanwhile, the government did not pay back the contractor for any expenses or legal fees, incurred on fighting a bid protest.
With Bid Protest Insurance, the government contractors can mitigate almost all of their risks.
The insurance plan offers coverage for legal defence costs, and in case the contract award is lost as a result of the bid protest, the insurance policy covers direct and indirect costs and wages according to the policy wording.
Mediabarn CEO Keith Deaven said: “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.”