Bonds and Guarantees

Increasing insurance awareness among Polish entrepreneurs, which results in the increase of interest in new risk reduction methods, has encouraged Euler Hermes to extend its offer to include insurance guarantees. The following products are available to entrepreneurs under our offer:

Contract guarantees

- tender guarantee (earnest fee payment) – is one of the statutory forms of depositing earnest money by entities entering public procurement tenders, which relieves the bidder from the obligation to deposit earnest money in cash;

- contract performance bond – constituting a guarantee of good and timely contract performance by the Customer (contractor), relieves him from the obligation to deposit a cash security;

- advance payment return guarantee – required by the investor who finances contract performance paying an advance to the contractor;

- guarantee of proper defects and faults removal – which constitutes a guarantee for the investor that possible defects and faults of the contract performed (revealed only after the handover protocol has been signed) will be properly and timely removed;

Customs liabilities payment guarantee

constituting an obligation to pay customs and tax liabilities towards Polish customs services.

Euler Hermes Insurance Guarantees constitute an alternative to bank guarantees. Thanks to them companies do not freeze open credit facilities, and so can they free their funds for investments or financing current operations. This is all the more important if you take into account long guarantee validity periods.