BOND INSURANCE

Bond Insurance is a financial solution directed to companies, being its main objective to support and protect the contractual obligations that they have assumed with customers, partners or suppliers. This insurance is assumed as an alternative to the traditional banking activity, so it doesn’t commit financial resources and doesn’t entail bank risk.

The solution ensures that the parties involved in a contract fulfill their obligations as stipulated, providing a safety net in case of failure to comply with the agreement. Besides, it improves liquidity and financial flexibility, which allows for more efficient financial management and more effective allocation of resources.

This insurance offers comprehensive coverage, which may include different types of guarantees. So, each type of insurance is adapted to the specific needs of the contract. Another significant advantage of this insurance is the agilility and simplicity inherent in the process of hiring this solution. Compared to bank guarantees, which often involve lengthy review and approval processes, insurance can be obtained more quickly and with less bureaucracy. This is particularly beneficial in situations where time is a critical factor, such as public tenders.

The insurance is suitable for various sectors of activity, such as companies that need to provide guarantees for contracts, companies that have to provide guarantees required by customs (within the scope of import and export activities), and to companies that need to provide financial guarantees of good payment or proper performance of obligations for the provision of services or delivery of goods.

Benefits of insurance

Among the various advantages of insurance, the following stand out:

• Protection of the contractual obligations that the company has assumed with the customer, partner or supplier;
• Reduction of banking risk;
• Increase in solvency;
• Presentation of a lower cost than the bank guarantee;
• No implications for the credit capacity of the company;
• Simplicity and less bureaucracy during the process;
• Coverage of various types of guarantee;
• Existence of various types of insurance.