Underwritten by Quick Sigorta 
Following the amendment of 05.12.2017 to Public Procurement Law No. 4734, surety bonds issued by insurance companies became acceptable as guarantees in public tenders. In surety insurance, the insurer stands as guarantor to the contracting authority on behalf of the contractor, so you can submit a surety bond instead of a bank guarantee letter when bidding or signing a contract.
Surety insurance is not a conventional indemnity policy but a guarantee product. Before a bond is issued, the insurer reviews your company's financial position and assigns a guarantee limit; approval and the size of that limit depend entirely on this financial assessment. We help you prepare the application file and the financial documents requested, and we follow the process on your behalf.
What is covered?
- Bid (provisional) guarantee required to take part in a tender (per tender documents)
- Performance (final) guarantee required at contract stage (per tender documents)
- Advance payment guarantee (per tender documents)
- Use instead of a bank guarantee letter in tenders under Law No. 4734
- Payment to the contracting authority if it lawfully calls the guarantee
- Bond verifiable through the Insurance Information and Monitoring Center (SBM)
What you should know
Surety Insurance is a Quick Sigorta product and is provided through our agency. Applications are made through us with the financial documents requested by the insurer.
Surety insurance protects the contracting authority (the beneficiary), not the contractor. If the authority lawfully calls the guarantee, the insurer pays and can then recover the amount from the contractor. A surety bond should therefore be thought of as a guarantee letter, not as an indemnity policy.
Approval and the guarantee limit depend on the insurer's assessment of your company's financial position; approval of every application is not guaranteed. Before you use a bond, we check the guarantee types accepted in the tender documents with you.
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Frequently asked questions
Surety bonds issued by insurers are accepted as guarantees in tenders under Public Procurement Law No. 4734. For purchases outside the scope of the law or private-sector work, acceptance depends on the client's terms; we review the tender documents with you.
A bank guarantee letter uses up your non-cash credit line at the bank. With a surety bond you can keep that line free for other financing needs.
Because the insurer will act as your guarantor, it reviews your financial position. If your financial documents do not meet its assessment criteria, the application may be declined or a lower limit than requested may be assigned.
Surety bonds can be verified through the Insurance Information and Monitoring Center (SBM).
The information on this page is for general guidance and does not replace policy wording. Scope of cover, limits, deductibles and exclusions are determined by the general and special conditions of the insurer you choose.