In many areas of the economy, it is common practice for clients to demand security or deposits from their business partners in return for the awarding of a contract. This can be in the form of bonds or guarantees which are usually issued by the principal bank.
Specialised insurance firms offer an alternative solution for many companies, as bonds and guarantees can significantly supplement a company’s liquidity. At GrECo, our teams are dedicated to guiding you through the process of creating tailored and appropriate bonding insurance solutions.
At GrECo we know that an increasingly common alternative is outsource the need for bonds to special insurers who – like banks – provide guarantees or bonds to contractors.
Under a bond/guarantee, the insurer assumes liability for the policyholder towards third parties for a wide variety of security purposes: for example, for the contractor`s obligations under construction and supply contracts.
We believe this provides you with a number of advantages:
- More flexibility by relieving credit facilities at your banks;
- Improvement of liquidity and increase of the credit line;
- Cost advantages, if applicable, as usually no fees are charged;
- High acceptance of bonding insurers at home and abroad.
We can assist you in several different ways. The first step is the analysis and arrangement of a tailored bond credit facility. We clarify your individual needs for bonds, and then go on to design the bond facility insurance according to our negotiations with the insurers. Following on from this if your needs or the insurance market change, we will then examine and adapt the contracts accordingly on your behalf.
Our expert team at GrECo continually monitors the insurance markets at home and abroad and will recommend amendments, and new opportunities (such as rental deposit guarantees) available through our international network of specialists. You can count on our help throughout. We are always on hand to answer questions that arise in connection with the processing of the bond and guarantee insurance and to review policy supplements to ensure that they align with the insurance contract and the agreements made.
Our team of experts has many years of experience and offers customised solutions, tailored to your needs. Our role is to provide you with an in-depth knowledge of insurance markets. We work closely with our clients and are therefore well-positioned to understand your specific risks and needs. GrECo is there to assist you in enhancing your risk management efforts, offering ongoing support at every step of the way.
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Lukáš Vodička
Group Practice Leader Credit & Political Risk
T +420 602 758 694