After several years of preparation within the fastener and Mexican insurance sector finally he is about to enter into force on Surety , guarantee instrument by which, payment of damages is guaranteed that may result from a breach of contract.
Being an additional security instrument, the Surety may only be issued by the Underwriters Surety and Bonding (through intermediaries).
Through the Surety Insurance , the insured is indemnified by the penalty established in the policy in case the policyholder fails to comply with the provisions of the contract that is in place.
The term “surety” means caution or prevention and refers to the guarantee that the agreement between the beneficiary and the policyholder will be carried out in a timely manner.
Although the functions of the Surety Insurance are similar to those of a surety bond, the first one has characteristics that in most cases make it easier to hire, since it does not require so many guarantees and documents.
Main characteristics of the Surety Insurance
It provides peace of mind to individuals and corporations at the time of doing business.
It grants security that the obligations established in a contract will be carried out.
It guarantees the repair of the damage in case of breach with the contract.
Avoid economic losses to the insured.
It does not require a joint obligor for hiring, unlike a bond
It does not imply large economic losses, since only the net premium must be paid.
When a claim is issued, the compensation payment will be made after 30 days.
If they are requesting you to ensure compliance with a contract to be certain that in the event of default, losses to the insured will be avoided, the Surety Bond is the instrument you need and we can help you process it!