The bond insurance addresses companies which assume guarantee clauses in commercial contracts with internal and/or external partners, in contractual relationships with state authorities and in trade relations with private enterprises.
This form of insurance replaces the letter of guarantee from the bank and has an advantage: it is no longer necessary a cash collateral or a mortgage.
The cost of bond insurance is similar or mostly lower than the cost of the guarantee letter.
Type of insurance / Type of bond:
- for auction participation – BID BOND
- for advance return – ADVANCE PAYMENT BOND
- for good performance – PERFORMANCE BOND
- for maintenance – MAINTENANCE BOND