What to take into account when hiring a Surety Insurance Bond?

The Surety Insurance

The Surety Insurance

The Surety Insurance is a guarantee contract whose purpose is to ensure that the obligations established in a contract are fulfilled, or failing that, to cover the losses resulting from the breach thereof. The Surety, unlike a bond, does not require a solidarity required for recruitment and should always be issued by an insurance company.

The Surety, being as such a contract does not depend on another contract for its existence, as with the bonds.

In case there is a breach of contract, the claim is issued and payment will be made after 30 days, provided that the documents provided in the certificate are presented. On the other hand, it is important to keep in mind that the insurer can NOT request additional documents.

It is expected that the insurance Cash plays a very important role in the economy of our country since the new Law on Institutions and Insurance, is based on the European model of Solvency II, whose main characteristic is that companies Insurances have enough reserves to face any risk ensuring their compliance with customers, ensuring a reduction in losses for consumers.

By means of a Surety Insurance, people will have the guarantee that in the event that a contract is breached, the Insurance Company will cover the resulting losses, so the Surety Bond will be an excellent alternative for the people who seek to ensure said contract and do not have a solidary obligation, as they would have to do when contracting a bond.

Do you want to know more about the Surety Insurance? Call us, our professional insurance advisors will gladly provide you with more information.