A surety insurance policy covers the risk of bankruptcy on the part of the policyholder. This always involves a three-way transaction between:
The beneficiary requires the policyholder to provide security in the form of a surety or guarantee. Otherwise it may withhold payments or services. The insurance company stands surety for the policyholder.
The surety policy is suitable for companies providing security in the form of a surety or guarantee in order to receive payments or services. Helvetia offers various sureties and guarantees depending on the needs of the policyholder.
The policyholder pays the premium. In the case of open-ended contracts, the policyholder pays the premium annually in advance. In the case of a time-limited surety or guarantee, the policyholder pays in advance for the full duration.