In the case of a guarantee and surety insurance, the insurer undertakes to pay the other party (the beneficiary of the guarantee) a certain amount of money to cover losses incurred due to non-performance of liability, if the business partner (which entered into such a guarantee or suretyship) has not fulfilled its obligations under the contract or regulations.
To whom is guarantee and suretyship insurance relevant?
For companies operating in a field where such type of insurance is mandatory under the applicable laws and regulations and for those who have entered into a contract under the terms of which a guarantee is required (such as construction, supply of goods or provision of services).
What is the importance of this insurance?
The need for a guarantee is often determined by the laws and regulations in force, which regulate a certain business area. Such regulations protect the interests of state institutions such as tax administration institutions or environmental protection institutions.
In turn, guarantee insurance products protect the contracting parties from possible financial losses due to non-performance or partial performance of the concluded contract. Before concluding such insurance contracts, the underwriters assess the financial position of the guarantor by reviewing their financial statements (including operational financial data, payment of taxes, cooperation in other types of insurance, etc.). In cases when insurers are not able to issue the necessary guarantee or surety, it is possible to agree on such additional collateral as a guarantee of a natural and / or legal person, a deposit, etc.
There are different types of guarantees and sureties insurance:
- Tender offer guarantee;
- Prepayment guarantee;
- Work performance guarantee;
- Warranty period / term guarantee;
- Tour operator / IATA guarantee;
- Customs guarantee;
- Excise guarantee;
- Waste management services guarantee ;
Our insurance brokers will provide you with a full-fledged market overview and help you to choose the most appropriate insurance solution individually tailored to your needs, as well as, if necessary, represent your interests in communication with the insurance company in case of claim.