Surety insurance

Surety insurance – often more affordable than a bank guarantee

As a business owner – for example, in construction, mechanical engineering, or plant engineering – you are likely familiar with this situation: your client requires a security deposit to protect themselves against financial loss in case you fail to complete the contract or do not fulfill it as agreed. The concept is simple: the insurer provides a guarantee on your behalf for the amount of the security deposit and sends your client a surety bond certificate as proof. A surety insurance policy is usually significantly cheaper than obtaining a bank guarantee from your house bank.

Your company’s liquidity remains intact
Your credit line remains unaffected, you don’t need to deposit any money, and your company’s liquidity is not tied up – giving you greater financial flexibility as a contractor. When taking out a surety insurance policy, you typically don’t need to provide collateral, although the insurer will assess your company’s creditworthiness before signing the contract. Surety insurers on the market offer tailored solutions for start-ups as well as for small and medium-sized enterprises.