Cover – financial loss of companies due to failed payments of due installments under contracts for sales with deferred payment. Insurance indemnification is paid in case of stopped or delayed payments by the customer, insolvency of the customer declared by court, or liquidation. The indemnity amount is the amount for which the buyer has received goods with deferred payment for a certain period of time.

The insurance “Public Procurement Principal Beneficiary Guarantee” is a firm and irrevocable commitment taken by the Insuring party and the Insurer regarding the payment of compensation to the size of the Insurance amount to the Insured party, in case that the Insuring party fails to fulfil or improperly fulfils the Guaranteed obligations which have been described in detail in the Contract between the Insuring and the Insured Parties.

Depending on the character of the Insuring party’s guaranteed obligation, the basic types of Guarantees are:

• Advance payment guarantee
• Good quality execution guarantee
• Maintenance guarantee
• Tender participation guarantee