Tryg Garanti

We are specialists on corporate insurance

Guarantee types

We offer different guarantee types to match your need

Tryg Garan­ti offers a vari­ety of guar­an­tee types with­in the con­struc­tion and man­u­fac­tur­ing seg­ment and also in favour of pub­lic author­i­ties, e.g. the EU Direc­torate.

Our bonds and guar­an­tees are wide­ly accept­ed by pri­vate as well as pub­lic ben­e­fi­cia­ries, both domes­ti­cal­ly and abroad.

We offer among oth­ers the fol­low­ing types of bonds:

Bank Guarantees

Bank guar­an­tees is a broad term cov­er­ing sev­er­al types of guar­an­tees, which are all intend­ed to min­i­mize the risk of loss in con­nec­tion with con­trac­tu­al oblig­a­tions.

As the name indi­cates, bank guar­an­tees are issued by banks, but insur­ance com­pa­nies such as Tryg Garan­ti and Mod­er­na Garan­ti issue sim­i­lar bonds.

Performance guarantees

A per­for­mance guar­an­tee is pro­vid­ed by a con­trac­tor in favour of the own­er or by a sub­con­trac­tor in favour of the turnkey con­trac­tor. Per­for­mance guar­an­tees are often issued accord­ing to an indus­try stan­dard agreed between the par­ties in the con­struc­tion sec­tor. The word­ing may there­fore dif­fer depend­ing on which coun­try you want the bond to be issued.

A Per­for­mance bond  pro­tects the own­er from loss­es, if the con­trac­tor fails to ful­fil his con­trac­tu­al oblig­a­tions.  The own­er will be paid the amount cov­ered under the bond and can use it to have the work com­plet­ed.

If the work has been com­plet­ed and defects are found dur­ing the main­te­nance peri­od, the own­er can call the bond. The amount cov­ered under the bond can be used to rem­e­dy the defects

Payment bonds

A pay­ment guar­an­tee pro­tects the sup­pli­er from loss­es in con­nec­tion with deliv­er­ies of goods and ser­vices. A pay­ment guar­an­tee secures that the buy­er ful­fils his pay­ment oblig­a­tions and pays the agreed amount to the sup­pli­er. Pay­ment guar­an­tees are used in many con­nec­tions, for exam­ple:

  1. In con­nec­tion with con­struc­tion projects, where a pay­ment bonds secures that the con­trac­tor pays his sup­pli­ers accord­ing to the con­tract. If you are a sub­con­trac­tor or sub­sup­pli­er to a gen­er­al con­trac­tor, a pay­ment bond can secure the­at you will get the agreed pay­ment for your work or your deliv­ered goods.
  2. In con­nec­tion with pay­ment of cus­tom tax­es and excis­es, where the pay­ment bond will act as secu­ri­ty for a cred­it giv­en by the cus­toms author­i­ties. Such pay­ment bonds are also named cus­tom bonds or cus­tom guar­an­tees.
  3. In con­nec­tion with rent deposits, where the pay­ment bond will replaces pay­ment of a deposit.

Advance Payment bonds

Advance pay­ment bonds secures refund of advance pay­ments, should the sup­pli­er not ful­fil his oblig­a­tions accord­ing to the con­tract, be it deliv­ery of goods or ser­vices.

Advance pay­ment bonds are pri­mar­i­ly seen in con­nec­tion with sup­plies from indus­tri­al com­pa­nies, where a buy­er wants to secure refund of advance pay­ments. In case of non-ful­fil­ment of the con­tract, the bond can be called and the amount paid out.

Advance pay­ment bonds are also seen in con­nec­tion with con­struc­tion projects, where sup­plies of mate­ri­als are part of the project. As owner/buyer, the advance pay­ment bond secures refund of any advance pay­ment, should the contractor/supplier not ful­fil his con­trac­tu­al oblig­a­tions. The amount of an advance pay­ment bond nor­mal­ly cor­re­sponds to the pre-paid amount. The bond nor­mal­ly expires, when the con­trac­tu­al ser­vice has been deliv­ered.

Supply bonds

Sup­ply bonds are espe­cial­ly used in the order-pro­duc­ing indus­try. A sup­ply bond cov­ers the loss expe­ri­enced, if the sup­pli­er does not ful­fil his con­trac­tu­al oblig­a­tions due to bank­rupt­cy or inad­e­quate deliv­ery. The bond cov­ers com­ple­tion and/or rem­e­dy of defects. The bond amount nor­mal­ly con­sti­tutes 10–20% of the con­tract sum and typ­i­cal­ly expires one year after con­trac­tu­al deliv­ery.

Pre-qualification

A pre-qual­i­fic­tion doc­u­ment con­firms that we co-oper­ate with you and that you present­ly has a guar­an­tee facil­i­ty, which cov­er the need for bonds on the date that you ask for the pre-qual­i­fi­ca­tion dec­la­ra­tion.

Bid bonds

If you want to bid for a project dur­ing a ten­der pro­ces, you may be asked to pro­vide a guar­an­tee in favour of the own­er on the day you place your offer. This is called a bid bond or a writ­ten under­tak­ing.

The bid bond secures that you can ful­fil your oblig­a­tions as bid­der. Thus, you guar­an­tee that you can per­form the work accord­ing to your bid and that you can pro­vide the required bonds if you win the con­tract.

When the con­tract is signed, the bid bond is often replaced by a per­for­mance or sup­ply bond.

EU bonds

EU bonds are issued in favour of the author­i­ties for exam­ple in con­nec­tion with imports and exports of  dairy prod­ucts. They may also be issued in con­nec­tion with pay­ment for prod­ucts bought from the EU inter­ven­tion stock. Or as secu­ri­ty for refund of EU sub­sidis­es accord­ing to EU’s mar­ket schemes.

An EU bond secures that the com­pa­ny ful­fils its oblig­a­tions accord­ing the the EU mar­ket schemes.

Tax bonds

Tax bonds are pay­ment bonds which secures pay­ment of tax­es and excis­es when trad­ing with coun­tries out­side of the EU. They are for exam­ple used in con­nec­tion with imports and exports of taxed goods like liquor and tobac­co.

The tax bond is issued in favour of the tax author­i­ties.

Rent deposit bonds

Rent deposit bonds secures an own­er pay­ment of rent for a spe­cif­ic peri­od, agreed upon in the under­ly­ing rental con­tract. The bond can be called if the ten­ant can­not pay his rent, for exam­ple due to bank­rupt­cy.

If you want to know more about guar­an­tees or if you have ques­tions regard­ing the spe­cif­ic use of each bond type, please call us at or write to us via this form. We will return to you as soon as pos­si­ble.