Bond Insurance


Bond Insurance

Surety insurance is the insurance counterpart to a bank guarantee, the surety bond. However, surety insurance has two major advantages over the bank product:

Your advantages

  • There are no security retentions
  • The bank’s credit line is not debited

Both advantages protect liquidity and allow greater financing flexibility, which is very helpful for companies in particularly challenging situations. As Germany’s market leader for bond-related services, we know our way around the DACH insurance market and beyond better than anyone else. We have an up-to-date overview of conditions at all times and can offer you the best possible cover. Whether it’s a new contract or optimisation of existing policies – we will be happy to advise you personally.

Why gracher is your leading partner for bond insurance /surety companies:

  • access to all the relevant bond insurers
  • ability to compare the terms and conditions of individual guarantees to find the best price, using our free software tool “Surety Manager” which draws information from current loan commitments in surety and bank contracts
  • the best price on a complete loan commitment for new contracts, as well as for the renegotiation of existing contracts using the “gracher database”, which holds records of over 3,500 data sets
  • minimum risk of liability to executive and supervisory boards through legally sound contracts (running review of contracts using our exclusive “Master Cover” tool)
  • on-the-ground support wherever you are through our membership of the global “Surety Alliance”
  • experience in providing solutions combining syndicates of surety insurers and banks
  • expertise in matters concerning vertical and horizontal consortiums, as well as sub-contractor avals
  • collateral pool expertise
  • all variants of bond insurance – including for industry-specific solutions
  • up to date on regulatory changes

Bond insurers flexible in fronting

They also offer a lot of flexibility in fronting matters: For example, if a German insurer doesn’t hold a license for a certain country then one of the insurers or banks in the country in question issues the surety or guarantee on behalf of the European insurer. Insurance companies also accept fronting by banks if the customer insists on a bank aval. Fronting is possible anywhere in the world and does not involve high fees. Fronting partners do not charge commitment fees either. Generally, bond providers offer maturities of up to ten years. That said, 10-year maturities are the exception: In investment-heavy industries, such as the energy sector, sureties are often linked to the commercial contract periods, which are usually shorter.