Performance Bond Insurance

The guarantee that ensures your contract is fulfilled with speed, legal security, and cost-efficiency.

Performance Bond Insurance, also known as Execution Surety Insurance, is the ideal solution to protect the project owner in engineering, supply, construction, and service contracts.

If the contracted company fails to meet its obligations, the insurer compensates for the losses or takes over the execution through third parties, ensuring the delivery of what was agreed upon.

What is Performance Bond Insurance?

It is a policy taken out by a company (the contractor) in favor of the project owner (the insured party).
It guarantees full compliance with contractual obligations, protecting the project owner against default, delays, or abandonment.

In case of non-compliance, the insurer can:

Compensate for losses up to the policy limit
Take over the contract and complete the work through another company

Applications

Civil construction contracts
Supply of equipment and materials
Provision of technical or operational services
Public and private tenders

Advantages

Legal security: protects the project owner against default
Speed: faster to contract than a bank guarantee
Cost-efficiency: does not affect the company’s credit limit
Flexibility: can be tailored to the main contract
Legal validity: recognized in public contracts and bidding processes

How it works

The contracted company applies for the insurance with the insurer
The insurer reviews the contract and issues the policy
The policy is presented to the project owner as a guarantee
In case of breach, the insurer compensates the loss or completes the contract

Need a solid guarantee for your contract?
Talk to our specialists now and request your personalized quote.