Surety bonds are contractual relationships where we vouch with our good name towards third parties for your obligation as a contractor. Bonding is also known as ‘surety’. A principle for bonding is to indemnify a person who has no 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.
Performance bonds and bid bonds
To grow your business, you may find yourself bidding with potential customers you don’t know. And, worse, they don’t know your company either. Including a bid and performance bond in your offering ensures your potential customer you will deliver on your offer. Similarly, on winning the contract, your company can immediately start with the fulfilment process.
Smaller companies pursuing international contracts may profit from working with bonds. It is a way to guarantee payments and delivery. With Euler Hermes, you can rely on our vast experience and our international network.
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