Euler Hermes Bonding - a leading provider of Surety Bonds across a variety of sectors


Retention/ Maintenance Bonds Instead of monies being held for the duration of a contract the contractor can provide a bond as an alternative. The bond guarantees that the contractor will fulfil its maintenance (or defects liability) obligations under the contract. These bonds predominantly relate to the construction industry.


Road and Sewer Bonds


Bespoke Solutions


New areas of business do sometimes arise, where the provision of a bond can ensure that a contractual obligation is fulfilled. In these circumstances, please contact a member of our underwriting team for an initial discussion to see if we can accommodate your request.


Local authorities and statutory agencies require bonds in connection with agreements under the Highways, Water and Planning Acts and other statutory provisions. The bond guarantees the completion of roads and sewers to enable them to be adopted by the relevant local authority. They are normally required by property developers and house builders. A reputation for providing a first class service to companies in a wide variety of business sectors.


Rural Payments Agency Guarantees Some EU Agricultural schemes involve the payment of subsidies to companies. In turn many such schemes require the lodgement of guarantee with the Rural Payment Agency to ensure compliance with the terms and conditions of such payments.


Outsourcing Bonds As part of a cost saving and efficiency improvement programme many local authorities and public sector organisations are outsourcing services. However, upon placement of


these contracts into the private sector, these organisations often require a bond to be provided. These bonds provide the local authorities with the knowledge that in the event of failure by the contractor to complete the contract they are able to redress any loss or damages that they have incurred. Such bonds span across a wide range of sectors including street cleaning, payroll services, leisure centre management and catering.


Advance/Stage Payment Bonds In particularly large contracts, advance or stage payments are often required to assist with the contractors mobilisation costs or the cost of raw materials. In exchange, the contractor will arrange for their surety to provide an Advance Payment Bond that will protect the customer in the event of the contractor defaulting under the terms of the contract. These bonds are mostly required in the engineering sector.


Custom Bonds Although we offer a wide range of different customs bonds, Duty Deferment Guarantees are the most common in


this sector. Duty payable on goods imported from outside the EU is payable immediately upon their arrival into the UK. With a Duty Deferment Guarantee the company has the flexibility of deferring payment for up to 45 days. This period gives a very real cash flow advantage for the company. These bonds are usually required by importers and freight forwarders for such products as food, tobacco or clothing.


Pension Bonds Restoration Bonds


A Restoration Bond is usually issued in favour of a local authority or the Environment Agency/ Scottish Environmental Protection Agency guaranteeing the completion of restoration works to a specific site. These bonds are usually issued in connection with quarrying, open cast mining or landfill.


Under local government pension scheme requirements, staff transferred from the employment of local authorities to private sector companies may choose to continue to belong to the local government pension scheme. The guarantee protects the local authority from loss in the event that the private sector company defaults in payment of contributions to the pension fund.


Contract Performance Bonds A Performance Bond covers the damages suffered by the employer in the event of non-performance of the contract by the contractor. They may be required for statutory, contractual or marketing purposes across a wide range of commercial situations. With the aid of a Performance Bond the employer is safe in the knowledge that they are able to obtain completion of the contract. These bonds are an essential part of the construction industry as well as many other sectors.


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