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Bond insurance – a full-fledged alternative to bank guarantees

A product that helps clients win contracts that are conditional on the provision of a guarantee for the supplier’s obligations in favour of the buyer – beneficiary.
Insurance of financial risk with the significant advantage of not committing the funds of a company, therefore not affecting the insured’s liquidity. It helps clients win contracts that are conditional on the provision of a guarantee. It is an insurance of the risk of the insured’s failure to perform an obligation under contracts for work, or other similar commercial agreements, concerning the performance of work, delivery of goods or provision of services.
Designed on the principle of insurance, i.e. in the event of a claim (failure to perform the insured’s obligations), the insurance company will provide indemnity directly to the beneficiary stated in the insurance contract.
Offers an alternative to common types of contractual bank guarantees (for an offer, for an advance payment, for proper performance of an agreement, for maintenance, etc.).
Intended for a broad variety of buyers, in particular for companies operating within the fields of civil engineering or mechanical engineering, as well as for other suppliers of goods and services that need a guarantee in order to take part in competitive biddings or as a condition from their customers.

An affordable alternative to bank guarantees
Does not increase the insured’s credit involvement with banks
Does not burden cash flow – the insurance company does not require the principal in advance, and the indemnity is paid out in full without any deductible
Individual approach to the needs and demands of the insured or beneficiary – the insurance proposal, including the amount of the premium, is calculated individually on the basis of the assessment of the insured’s creditworthiness, requested maximum liability, type and length of guarantee, etc.
Minimum exclusions from insurance – guaranteed indemnification to the beneficiary
Financial power of the insurance company, as well as reinsurance by top-class reinsurers, combined with the many years’ of experience KUPEG’s shareholders have in the provision of insurance guarantees
First-call performance (payment of indemnity within 15 days of insured event notification)
Irrevocability
Possibility of issuing guarantee insurance with respect to a particular ad-hoc project and opening of a guarantee framework, from which individual guarantee policies are issued according to the current needs of the insured
The guarantee policy is in the currency of the contract (CZK, EUR, USD)
Insurance period = maximum of 5 years
Amount of the guarantee policy depends on the financial stability and creditworthiness of the client

For further information, you can directly contact KUPEG’s specialist >> Ing. Irena Slepičková