Surety Insurance

A financial solution that provides the guarantee required for tenders and contracts through a surety bond, without tying up your bank credit limit.

Get a quote on WhatsApp 0850 303 28 66

Who is it for?

Contractors bidding for public and private sector tenders
Companies in construction, contracting, engineering and machinery manufacturing
Import and export companies handling customs procedures
Growing businesses that don't want letters of guarantee tying up their bank credit limit
Main contractors expected to guarantee payments to subcontractors and workers

What is Surety Insurance and what does it do?

Bidding for a tender or signing a big contract often starts with the same question: where will the guarantee come from? A bank letter of guarantee ties up a large part of your credit limit. As your business grows, so does the need for guarantees, and your room to breathe gets tighter.

Surety insurance unties that knot. We act as your guarantor against the risk that you can't meet the obligation defined in the policy, and provide security to the beneficiary named in it. For tenders under Public Procurement Law No. 4734, a surety bond can be submitted instead of a bank letter of guarantee.

There's a whole family of bonds, from bid and performance bonds to advance payment, customs and court bonds. We work out together which guarantee you need at each stage of your work.

When you take it out with Atom Sigorta

Doesn't tie up your bank cash and non-cash credit limits the way a letter of guarantee does
A surety bond can be submitted instead of a bank letter of guarantee in public tenders
A separate bond for each stage of a tender: bid, performance, advance payment, contract
A flexible structure that can be conditional or payable on first demand
Lets you provide guarantees for a growing workload without locking up your cash flow
One place to go for non-trade needs too, such as customs, courts and public receivables

What's covered

What does the policy cover?

Depending on the package you choose, some or all of the cover below can be added to your policy.

Bid Bond (Tender Participation Guarantee)

Provides security against the risk that you withdraw from a tender before it's concluded, decide not to sign the contract after winning, or can't provide the guarantees required under the tender.

Performance Bond

Covers the risk that obligations aren't fulfilled in line with the terms of the contract. If the obligation isn't met, the insurer can also arrange for a new contractor to complete the work.

Contract Bond

Provides security against the debtor failing to properly fulfil their obligations under a contract. It makes it easier for commercial contracts to run on mutual trust.

Advance Payment Bond

Protects against the risk that the party receiving an advance payment under a tender, project or trade in goods and services fails to meet its obligations and doesn't repay the advance.

Manufacturing, Maintenance and Repair Bond

Applies to work such as construction, engineering or machinery manufacturing, where performance is judged after delivery. It covers losses from defective workmanship that come to light within a certain period after handover.

Payment Bond

Provides security against the risk that payments to subcontractors and workers aren't made. On large projects, it keeps trust intact along the subcontractor chain.

Customs and Court Bonds

Used where tax offices, customs authorities or courts are the beneficiary. They're required to bring a lawsuit, to release goods from customs, or to cover any public debt that might arise from a customs clearance error.

Fidelity Bond

Covers losses the employer suffers because of fraud, deception or embezzlement by employees named in the surety bond.

Public Procurement Bond

Issued for tenders subject to Public Procurement Law No. 4734 and related legislation. It's an unconditional, definite, primary, time-limited guarantee payable on first demand.

Public Receivables Bond

Issued against the risk of non-payment of public receivables under Law No. 6183 on the Collection Procedure of Public Receivables. It's open-ended and payable on first demand.

Direct and Indirect Surety

We can act as your guarantor directly towards the beneficiary. Alternatively, security can be provided through indirect surety, backed by a bank, a credit guarantee institution or another financial institution.

Beneficiary-Related Risks by Endorsement

The risk that the obligation can't be met because the beneficiary fails to comply with the law can be covered by an endorsement to the policy.

Cover, exclusions and limits vary with the package you choose and the policy's general and special terms. To work out the right set of cover for you, call us on 0850 303 28 66.

Frequently asked questions

Your questions about Surety Insurance

If your question isn't on the list, give us a call. We'll keep explaining until it all makes sense.

Following an amendment to Public Procurement Law No. 4734, a surety bond can be submitted instead of a bank letter of guarantee in tenders. Even so, the tender documents and the beneficiary institution decide which documents are accepted, so we recommend checking the specifications before you bid.

The loss of the beneficiary named in the policy. Up to the amount it pays out, the insurer legally steps into the beneficiary's shoes and takes over the beneficiary's rights against the debtor.

Yes. Surety insurance doesn't remove your obligation; it works like a form of credit security. The policyholder repays the insurer the amount paid under the surety bond, together with costs and any default interest agreed in the contract.

You provide your latest annual financial statements and, if available, an independent audit report. If the annual accounts aren't finalised yet, a provisional balance sheet and income statement are provided on request. You also need to disclose your cash and non-cash credit relationships.

You must not grant security such as mortgages or pledges over your assets to third parties without informing the insurer, and you must report any significant changes that could affect the decision to provide the guarantee. You should also inform the insurer if a delay or negligence is likely to cause a loss.

Yes. With a new surety request, or if your creditworthiness deteriorates significantly, extra security may be requested to keep the existing surety in place. It's a balancing mechanism that keeps the arrangement sound.

It can be issued as conditional or as payable on first demand. Public procurement and public receivables bonds are payable on first demand, and the public receivables bond is also issued with no expiry date.

Yes, the policyholder can terminate the contract at any time with immediate effect. In that case, you pay the premium accrued up to the day you return the surety bonds in force, plus any additional costs stated in the policy.

Get a quote

Get a quote for Surety Insurance

Send us a few details on WhatsApp. We'll compare the options from the insurers we work with and share them with you in the same chat.

Quicker by phone

0850 303 28 66 hakan@atomsigorta.com