Bond Insurance Policy

A Bond insurance policy protects the UK exporter against loss, where a UK bank issues a bond on their behalf to an overseas buyer, or counter-guarantee to a bank in the buyer’s country, as a condition of an export contract.

UK Export Finance will consider cover for all types of bonds for export contracts, except tender or bid bonds.  The main types of bonds that UK Export Finance are asked to cover are advance payment bonds and performance bonds.  Cover is also considered for reducing bonds, which are bonds under which the amount payable reduces over time or as goods or services are delivered.

The exporter is given 100% cover, there is no fee for the application and the premium payable for UK Export Finance's cover is determined on a case by case basis.