Guarantee Insurance
Description and purpose
Guarantee insurance is a financial tool that replaces bank guarantees, protects beneficiaries of a contractual obligation against risks of non-fulfillment by debtors or economic operators. These policies are widely used in sectors such as construction, public procurement, and service provision, ensuring that contractual obligations are met as agreed.
Guarantee insurance is a financial tool that replaces bank guarantees, protects beneficiaries of a contractual obligation against risks of non-fulfillment by debtors or economic operators. These policies are widely used in sectors such as construction, public procurement, and service provision, ensuring that contractual obligations are met as agreed.
Target audience
Construction companies, service providers, public institutions, and other organizations requiring contractual guarantees.
Construction companies, service providers, public institutions, and other organizations requiring contractual guarantees.
Coverage and risks
- Non-fulfillment of contractual obligations – protects beneficiaries if debtors fail to meet their assumed obligations.
- Risks related to construction projects – covers contractor non-compliance, such as failure to meet deadlines or technical specifications.
- Liability to beneficiaries – protection against financial losses caused by contract non-performance.
Types and optionsi
- Performance guarantees: protect beneficiaries in case the contractor does not complete the work.
- Advance payment guarantees: protect beneficiaries if the debtor does not justify received advances.
- Supply guarantees: protect against failure to deliver goods or services within the agreed timeframes.
- Performance guarantees: protect beneficiaries in case the contractor does not complete the work.
- Advance payment guarantees: protect beneficiaries if the debtor does not justify received advances.
- Supply guarantees: protect against failure to deliver goods or services within the agreed timeframes.
Benefits
Ensuring the fulfillment of contractual obligations, reducing financial risks associated with non-performance of contracts, maintaining stability in commercial relationships, and protecting beneficiaries against financial losses.
Ensuring the fulfillment of contractual obligations, reducing financial risks associated with non-performance of contracts, maintaining stability in commercial relationships, and protecting beneficiaries against financial losses.
