In the interest of the client, the insurance covers cases when the contractor fails to fulfill in whole or in part its obligations arising from the terms and conditions of the tender procedure or construction contract documents. This protects the client against risks associated with improper performance or breach of contract.

For contractors, insurance is an important financial risk management tool. It allows them to reduce the amount of their own financial resources that need to be invested in the performance of work and guarantee obligations. As a result, contractors can manage their budgets and financial flows more effectively, focusing on the quality and timely fulfillment of their obligations to clients.

What does the insurance policy cover?

Client's losses in the event of the contractor's failure to fulfill its obligations under a construction tender or contract:

• Tender Guarantee - the full amount of the guarantee if the tenderer refuses to enter into a construction contract, withdraws its bid during the period of validity or fails to provide a performance guarantee if provided for in the contract.
• Advance payment refund guarantee - the amount of the advance payment corresponding to the amount of unperformed work.
• Performance guarantee - a part of the contract price corresponding to the volume of unperformed works.
• Time (period) guarantee - payment for performance of warranty works specified in the construction contract, which the contractor has failed to perform in full or in part.

Factors affecting the availability and cost of a policy:

• Amount of coverage.
• Type of warranty required.
• Duration of the required warranty.
• The financial performance of the building contractor.
• Overdue or unfulfilled obligations under contracts.
• Legal proceedings involving the company.
• Reputation of the company and its owners.