Contract Bond Cover

Product at a glance

By taking out contract bond cover, a German exporter may insure himself against the politically occasioned or unfair calling of a bond required by the foreign buyer to ensure the exporter’s satisfactory performance of the contract.

Target group

German export firms

Insurable risks

Contract bond cover offers protection against the loss of the guarantee amount in cases of

• fair calling of the bond by the buyer because the exporter has failed to fulfil his obligations due to political events abroad;
• fair calling of the bond by the buyer because contract performance has become impossible due to embargo measures taken by the Federal Republic of Germany;
• unfair calling of the bond due to political events abroad;
• unfair calling of the bond due to other circumstances which make the claim to reimbursement of the guaranteed sum unenforceable for political or commercial reasons

Examples of use

• Bid bonds
• Advance payment bonds
• Performance bonds
• Maintenance bonds
• Customs guarantees
• Retention guarantees
   

Special features

A Contract Bond Guarantee can be issued only in combination with a Manufacturing Risk Guarantee or a Supplier Credit Guarantee.

Premium

Single premium calculated as percentage of the guaranteed amount and, as the case may be, specific processing fees

Uninsured portion

5 % for all risks

This product can be applied for online.

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