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Euler Hermes > Bonding




Bonding for your sector

Your business partners ask you for bonds and guarantees to be certain that you will perform your contractual obligations. Bonding with Euler Hermes gives them the necessary security to start lasting and confident business relations.


​Bonding is a contractual triangle relationship where we vouch with our good name towards third parties for your obligation as a contractor. Bonding is also know as "surety".
A principle for bonding is to indemnify a person who has no mutual relationship to the insurance company (external party).
The bond or guarantee secures that the contractor (your company) will fulfil its obligations (or defects liability) under the contract.
 How does bonding work for guarantees and securities?

How does bonding work?

An EH bond issued within the underwriting criteria you will be able to tender for a contract knowing that credit lines with your bank are not affected. This means that borrowing facilities and working capital are safeguarded enabling you to plan ahead in the confident knowledge that you have the capability to carry out the contract and provide the bond – a distinct advantage over a competitor who does not have this facility.
Standard types of bonds/guarantees include:
  • Bid bonds  : secure the reliability of an offer in a tendering procedure
  • Advanced payment bonds (6 month duration) : secure the proper use of advance payments for a contractual obligation
  • Performance bonds (2 years duration) : secure the proper performance of a contractual obligation
  • Maintenance bonds (5 years duration) : secure the elimination of deficiencies during a warranty period of a contractual obligation
  • Customs, tax and contribution bonds (12 month duration) : secure the state against the failure of a delinquent taxpayer
Euler Hermes does not provide financial guarantees.