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This insurance pays indemnity to an insured creditor in cases of default of a debtor under a credit agreement. The insurer is liable up to the pre-agreed percentage of the principal and the interest due as agreed between the insured and the debtor, including penalty interest for arrears.
The insurance covers the risk of activating any bank guarantee issued by a Bulgarian commercial bank in favour of a beneficiary which is a Bulgarian legal entity or institution. Examples include the insurance of guarantees for participation in tender procedures, for advance payments issued to Bulgarian construction firms, etc.
This insurance product is designed for individuals or legal entities engaged in commercial activities under various commercial agreements. The insurance covers financial losses resulting from a breach of contracts between individuals or legal entities. The non-performance of the financial obligations is subject to compensation according to the provisions set in the insurance contract.