Surety

About

Surety Insurance ensures fulfilment of contractual obligations made by the service provider (policyholder) to the purchaser (the insured). Surety Insurance protects against any losses caused by the failure to fulfil contractual clauses.

Who can/should purchase this insurance

This insurance is requested for government or private-enterprise contracts to ensure the fulfilment of all contract obligations for construction, supply, service provision, public-service concessions, and bid processes, in addition to being broadly used as a replacement for deposits in court and as a guarantee for payment of taxes.

Advantages

Does not affect companies’ lines of credit
Less risk to the purchaser
Greater agility at the time of purchase
Is a low-cost guarantee option

Types

Judicial

Judicial Surety Insurance secures the sums under discussion in court cases that require a deposit in court. It is a low-cost option for companies that provides the court with security and agility. In terms of its acceptance, Judicial Surety Insurance is widely accepted as security over the course of lawsuits. In the case of labor-related suits, it has been even easier since November 2017, when the labor reform came into effect, in which the use of this type of guarantee was expressly written into the Consolidated Labor Laws (CLT).

We offer products for different types of cases, such as civil, labor, and provisional remedy suits, replacing deposits in court during the course of tax foreclosure cases, plus appeal bonds.

Go to the Issuance portal

Administrative for tax credits

This Surety Insurance attests to the accuracy of the tax credits reported by the policyholder in federal-, state-, or municipal-level administrative suits. In this case, Surety Insurance is used to release these credits, and also to ensure the policyholder’s standing in special taxation regimes.

Customs

The objective of Customs Surety Insurance is to guarantee payment of suspended taxes owing to customs authorities, within the scope of application of the special customs regime. In this case, the Surety Insurance works to facilitate the release of imported goods.

Payment advances

Ensures that the sums received as advances for contracts are allocated to the immediate performance of the contract purpose, that is, the execution of the stage underway, all the way to its completion. This guarantee enables the release of funds to the supplier, without them having to use their own cashflow, and, for the purchaser, it is a guarantee that the funds advanced will be applied to the supply of the equipment or to the execution of the work set out in the contract.

Corrective maintenance

Ensures the execution of the corrective actions specified by the purchaser as necessary to repair the problems that arose during performance of the contract and that were the exclusive liability of the policyholder.

Bidder

This type of insurance ensures that in public or private bid processes, the policy-holding winner of the competition will uphold their proposal and sign the contract under the terms and conditions specified and by the deadline set out in the public notice. This insurance is often requested for bidding procedures such as auctions, public competitions, requests for quotation, and letters of invitation.

Construction, supply or service provision

This type of insurance guarantees compliance with all obligations assumed in a contract for construction, supply, or service provision, thus protecting the insured against the risk of breach by the policyholder.

Concessions

Guarantees fulfilment of all obligations assumed under a contract for the concession for the operation of a public utility or service such as highways, sanitation, and power.

Articles

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