A report by the → Insurer a promise, in the form of a guarantee, to cover certain – present or future – obligations of the debtor (→ policyholder’s) in the event of his insolvency or refusal to pay. Bond insurance is available for various sectors and in different forms. The most common types of bond insurance are:
- Guarantees under the Construction Trades Guarantee Scheme pursuant to Section 648a of the German Civil Code (BGB)
- Guarantee against claims for defects
- Performance bonds
- Advance payment guarantees
- Guarantees to secure, for example, deliveries of goods and employee share schemes
- Guarantees under the Federal Clean Air Act
- Rental deposit for commercial properties
- IATA guarantees (guarantees to ensure payment for flight tickets issued online (IATA = International Air Transport Association))
- Litigation guarantees
- Customs guarantees.
Source reference: See the VDT publication “VDT Article Series, Part 5 | Glossary“ and the source cited there.