Unfair and Fair Bond Calling

Unfair calling insurance protects exporters and contractors against the calling of “on demand” bonds, such as bid, advance payment, performance, retention or warranty bonds where they are not in default of their contractual obligations. Cover is available for bonds issued to both public and private sector buyers.

Policy terms would follow the tenor of the underlying bonds and may be insured on a one-off basis or through a portfolio approach.

In all cases, the Insured must retain part of the exposure on its books without any further hedging or additional insurance arrangements. This minimum self-retention would typically be 10% of any exposure, though it can be higher or lower.