Contract bond insurance protects Swiss exporters from losses caused by a customer calling a contract bond (usually a bank guarantee) that was furnished to secure the exporter’s contractual obligations to the customer.
The bond is usually a down payment, performance or warranty bond, but SERV insures all types of contract bonds. A down payment guarantee is indirectly included in pre-shipment risk insurance and does not have to be insured separately.
Contract bond insurance covers the loss of the guaranteed sum if the foreign customer legitimately calls the guarantee because the exporter fails to meet its commitments due to political risks or force majeure or because an embargo imposed by Switzerland has made it impossible to fulfil the export contract. The guaranteed sum is even covered if the customer unfairly calls the guarantee and the loss is not reimbursed within three months.
- Maximum cover ratio: 95%