The EU Bonds


Author: mgr Iwona Frydryszek – Chairman of the Board of ActioBroker SP. z o. o.

Insurance bonds as the security of the project grant agreement with the European Union.


This is another third largest EU perspective in which there is PLN 82 billion to use.

As an insurance broker specialising in financial insurance we covered EU funds from both the first and second perspective. Currently we aim to help Polish entrepreneurs in obtaining bonds for contracts to obtain grant for projects from the EU funds in the years 2014 – 2020.

One of the essential elements for obtaining funds under the different funds of the European Union – are insurance bonds.

The granting of financial support for the enterprise involves the necessity of signing the grant agreement.

The agreement included a requirement for the legal and financial security of the project. One of the possible forms of securing an agreement is the insurance bond.

The bond amount and its contents depend on the program under which the company receives the grant.



Mostly the regulations of the EU funds clarify the ability and means of cover.
There are also such institutions, like .: PARP, which have developed their own warranty designs.

Since 2006, we have been observing simplification of procedures, which implies a departure from the strict regulations such as: adoption of contracts designs by regulation, in favour of greater freedom in the shaping of civil law contracts, which, however, requires knowledge of the subject and experience in discussions with the financing institutions, and that is why we are ready to help you to go the hard way of submitting a complete documentation and to solve all the problems, in order to obtain grant and adjust the content of the bonds to the needs of specific contracts and enterprise.

In connection with obtaining funds from the European Union the demand for standard insurance bonds will increase, such as:

  • deposit bonds
  • performance bond
  • retention bond
  • advance payment bond

Bonds of this type are issued by banks as well. However, due to the increasing demand for loans related to the inflow of EU funds for investments, banks may have a problem with increasing their involvement.

Obtaining insurance bond also has the advantage that it does not affect the reduction of the limit in the bank and improves the creditworthiness.

When using an insurance bond we should pay attention to the content. Many insurance companies use the content of bonds corresponding to EU funds regulations. For example, FIDIC bonds have been developed for project design, or design and construction, the periods of the bonds were extended etc.

Apart from the content of the bond the price is extremely important for an entrepreneur. Premiums for bank and insurance bonds are comparable on the market today, but their price depends on the amount of the bond granted and the period in which it was issued. Undoubtedly, insurance bonds are very favourable forms of securing a contract for the company, because thanks to them you do not need to block your own funds. Insurance bond is the deductible income for the company, and obtaining it from a financial institution authenticates the company applying for funds from the European Union. They are usually the only way to secure EU funds for local government institutions and companies operating in the non – profit organisations. When using the insurance bond we should remember one more important fact that they may also be an eligible cost for some of the Structural Funds, which require prior note in the grant application.