Surety bonds

Surety bonds

Surety bonds or insurance guarantees is a type of isurance under contracts for public procurement - an analogue of a cash pledge or a bank guarantee. The guarantee represents a commitment undertaken by the insured and the insurer to pay compensation in favor of the beneficiary under the contract, in the event that the insured (contractor) does not fulfill or does not exactly fulfill his obligations under the concluded contract.

Covered risks

  • Advance payment guarantee – secures the funds provided in advance under the contract
  • Performance guarantee - covers the risk of non-performance or inaccurate performance of the insured's obligations under a specific contract
  • Maintenance and warranty service guarantee - ensures the insured's obligations regarding warranty service under the contract
  • Other guarantees approved by the Insurer

Advantages

  • Convenient, simple and quick underwriting process 
  • Minimum required set of documents for risk assessment - draft contract/agreement, financial statements of the applicants (balance sheets and income statements) for the last two years, contractor selection decision, completed proposal - questionnaire
  • No blocking of the applicant's funds compared to other options - bank guarantee or cash pledge
  • No additional fees and costs
  • Eases companies' access to public procurement 

Documents for download

Информационен документ Застраховка Гаранции.pdf
(pdf, 340KB)

Contact us