Surety bonds
Insurance surety for tenders and contractual obligations.
Another option for your company’s bonding requirements. Insurance-backed guarantees can be used to enter tenders and to secure contractual obligations, either as an alternative to a bank guarantee or alongside one.
More room for the bonds you need.
For a company that bids for work, takes on projects, or holds contracts with bonding requirements, how much bonding capacity is available matters a great deal.
Insurance-backed surety adds one more option beside the banking route. Depending on the company and on underwriting, it can widen what is available to meet those requirements.
Whether a bond can be issued, the limit available and any security required are all assessed case by case.
How we help
From the requirement to the bond.
We start from the specific requirement: which bond is asked for, for what amount, for how long, and under which contract.
We help you put the file together, look at the insurance options available, and coordinate the process through to issuance — provided the insurer approves the request.
The types
When each one is used.
- Bid bondTo enter a tender, where the tender documents require one.
- Performance bondTo secure the obligations the company takes on under a contract.
- Advance payment bondWhere the contract provides for an advance and requires a guarantee against it.
- Maintenance or warranty bondFor obligations that continue after a project is completed or handed over.
- Other contractual guaranteesDepending on the terms of the contract and what the beneficiary requires.
Surety bond or bank guarantee?
You do not have to choose one to the exclusion of the other. Insurance-backed surety can sit alongside your banking relationship as an additional source of bonding capacity.
Whether it suits your company depends on its financial position, the type and size of the bond, and the duration and terms of the underlying contract.
Underwriting
What is looked at.
The insurer assesses the company and the particular obligation the bond is being asked to secure. Typically that means:
- The company’s financial position
- Its experience and its activity
- Its record on comparable projects or contracts
- Bonds already outstanding
- The amount and duration of the new bond
- The terms of the contract or tender
The assessment determines whether a bond can be issued and on what terms.
On a construction project
Design. Build. Guarantee.
- 01
Professional indemnity
Responsibility for the design, the calculations and the supervision follows the engineer.
See the detailDesign & supervision - 02
Construction All Risks
The works themselves while being built, with third-party liability on site.
See the detailConstruction - 03
Surety bonds
Tender participation, performance, advance payments and maintenance.
Discuss your requirementContractual guarantees
Common questions
Worth knowing.
What does a surety bond cost?
There is no single rate. Cost relates to the amount of the bond, its duration, the type of obligation and the assessment of the company. We set it out in the proposal, before you commit to anything.
How long does it take?
Mainly it depends on how complete the file is. When the information goes in complete, the assessment proceeds without successive rounds of questions.
Is security required?
It depends on the case. Any security is determined at underwriting, according to the company, the amount and the nature of the obligation, and you will know before accepting the proposal.
Will the beneficiary accept an insurance-backed bond?
For public contracts, the framework in force (Law 4412/2016, article 72 para. 11, as replaced by Law 4782/2021) provides that guarantees are issued by credit or financial institutions, or by insurance undertakings lawfully operating in an EU or EEA member state and authorised for class 15, “Suretyship”. The choice of issuer belongs to the bidder. Outside public procurement, what is accepted is set by the beneficiary — which we check before every issuance.
Let us look at what your company needs.
Send us the tender or the contract, with the basic particulars of the bond required. We will explain the options available and the next steps.