SURETY BONDS
Surety Bonds & Bank Guarantees through Insurance with VEKRIA ADVISORS
Surety Bonds & Bank Guarantees through Insurance with VEKRIA ADVISORS
Surety insurance and the issuance of Bank Guarantees through an insurance program are essential tools for safeguarding businesses. These guarantees provide third-party assurance for the fulfillment of your company’s contractual or other obligations, such as advance payments, project completion, or compliance with legal requirements.
Globally, the volume of guarantees exceeds 1 trillion euros annually, covering sectors such as construction, industry, energy, technology, and public works. In Greece, the total value of guarantees exceeds 3 billion euros annually (2023 data), with insurance companies actively participating in the issuance of these instruments in the last five years.
At VEKRIA ADVISORS, we provide full guidance and management of the process, from selecting the right insurance company to assessing your business needs and negotiating commercial and financial terms. With expertise and experience, we offer tailored solutions to meet every need—from small and medium-sized enterprises to large multinational corporations—ensuring comprehensive protection, exceptional flexibility, and ease of collaboration.
Surety Bonds providers
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Contract Assurance
Reliability and guarantee for the proper execution of your projects.
Access to Public Projects
Opportunities to participate in tenders with the necessary guarantee.
Flexibility of Guarantees
Customized solutions that address your specific needs.
Building Trust
Enhance your reputation and negotiating power with the right guarantees.
Q&A’s
Everything You Need To KnowAbout Surety Bonds
Surety is a tool that replaces a bank guarantee, ensuring that your business will fulfill its contractual obligations to third parties (e.g. public entities).
- Performance Bond Guarantees
- Tax and Customs Duty Guarantees
- Bid Bond Guarantees
- Good Payment Guarantees
- Operational Performance Guarantees
- Advance Payment Bond Guarantees
Each guarantee covers a different need in your business activities.
The insurance company issues the guarantee on your behalf to the counterparty. If you fail to fulfill your obligations, the insurer covers the compensation.
A business importing products from abroad is required to pay customs duties and VAT for its imported goods. Instead of paying these amounts upfront, it can provide a Surety Bond issued by an insurance company.
How it works:
- The business submits a request for a Surety Bond to the insurance company, which issues the guarantee in favor of the customs authority.
- The guarantee covers the amount of customs duties and VAT owed by the business.
- If the business is unable to fulfill its obligations, the customs authority can collect the covered amount directly from the insurance company.
Benefits for the business:
- Liquidity savings: The business does not need to tie up capital immediately.
- Flexibility: It allows for easier management of tax and duty obligations.
Unlike banks, which often require cash collaterals or the use of credit lines, Surety Bonds through an insurance company do not tie up your business’s capital or credit lines. This approach enhances liquidity and flexibility, allowing you to use your resources more efficiently while still ensuring the required guarantees.
You provide VEKRIA ADVISORS with the necessary financial documents, and we act as an intermediary to facilitate the evaluation of your financial position by the insurance company. Once approved, the guarantee is issued promptly.
The cost of guarantee insurance is now more competitive than the rates offered by Greek banks. The annual cost typically ranges from 1% to 4% of the guarantee value, depending on the type of guarantee and the associated risk.
Guarantee insurance does not tie up liquidity as bank-issued guarantees do. It accelerates your participation in tenders and enhances the credibility and terms of your cooperation with customers and suppliers.
It is used in public tenders, infrastructure projects, product imports subject to customs control, contracts with large companies and international partnerships.
Using insurance guarantees reduces your dependence on bank limits, keeping your financing lines available for other needs.
The insurance company covers the beneficiary of the guarantee and may claim compensation from you, depending on the terms of the contract.
Yes, many insurance companies offer guarantees for international projects, allowing you to participate in foreign markets with security.
Surety Insurance: What to Consider for the Best Choice
Not all surety insurances are the same. It’s important to choose products that meet the needs of your business while ensuring reliable service. Here are the key factors to consider:
Type of Guarantee
Certain industries or projects require specific types of guarantees, such as performance bonds for public works. Ensure that the guarantees you select match your needs.
Cost
The cost of a guarantee depends on the financial stability of the client and the coverage amount. Look for flexible options and potential discounts for renewals or service packages.
Customer Service
Transparency and prompt support are crucial. As a policyholder with third-party beneficiaries, you’ll need to provide recent financial data for credit assessment. Unlike bank-issued surety bonds, insurance companies do not require collateral.
At VEKRIA ADVISORS, we specialize in providing Surety Insurance that perfectly suits your requirements. Contact us for expert advice and tailored solutions.
The 10 Key Benefits of Partnering with Us
As a specialized broker, VEKRIA ADVISORS opens new horizons in surety insurance with flexible and effective solutions. We enhance your credibility, reduce costs, and support your participation in large projects and new markets.
- Credibility in Public and Private Tenders
Ensure your credibility with surety bonds that cover all your obligations. - Improved Liquidity
Reduce the need for locked capital through surety insurance. - Enhanced Competitiveness
Participate in larger projects and markets with the backing of sureties. - Tailored Solutions
Guarantees customized to meet the specific needs of your industry. - Ease of Management
Simplified processes for issuing and managing surety bonds. - Increased Trust
Build trust with partners and suppliers through stable guarantees. - Instant Issuance of Guarantees
Fast response and immediate issuance of sureties without delays. - Reduced Financing Costs
Replace bank guarantees with more cost-effective insurance solutions. - Continuous Support
Expert advisory guidance for optimal surety management. - Access to Specialized Markets
Guarantees that cover international markets and complex projects.
Customer Testimonials
What Our Clients Say About Our Collaboration!
Securing Guarantees is critical — but not always easy
“In a major tender for the construction of an energy infrastructure project, the requirements for the Performance Bond were so strict that we were at risk of being disqualified.
Kyriakos quickly prepared a detailed assessment report supporting our financial credibility and technical capacity. The insurer approved the terms, and we secured our participation.
Without Kyriakos, we wouldn’t have even made it to the starting line.”
