After all, it can turn out to be an expensive business if a contractor does not complete the work on time or fails to deliver badly needed components: precious time is lost, there are knock-on problems with payment and financial losses.
Under bonding cover, Euler Hermes assumes liability for you towards third parties for the most varied types of security – e.g. for your obligations as a contractor under construction and supply contracts. This can take the shape of bonds, guarantees or other kinds of surety. Euler Hermes is acting as a completely independent guarantor here.
In essence, this means that in the event of default by the contractor, usually as a result of insolvency, the Employer will be able to recover the necessary additional costs they incur from the Surety up to the level of the bond.