The word “Caution” means prevention or caution and refers to the guarantee that what is agreed between two or more persons will be carried out as established. For this reason, the Surety Insurance, is an instrument of guarantee by means of which, an insuring company commits itself with the insured, to compensate it for the damages that this may suffer in the event of a breach of the obligations. established in a contract, which may be legal or contractual.
The Insurance of Caution is composed of 3 parts:
- Insured: Beneficiary of the Insurance.
- Insurer: Insurance Company that issues the Insurance and supports the fulfillment of the contract.
- Policyholder: Responsible for fulfilling the obligation as stipulated in the contract.
The 10 reasons to hire a Surety Insurance are:
- Guarantee and tranquility that it provides to Physical and Moral People when doing business.
- Unlike a deposit, does not require a joint obligor for hiring.
- It provides assurance that the obligations established in a contract will be carried out as established.
- In the event that a breach of contract is incurred, the losses will be covered by the Insurance Company.
- Being a guarantee instrument, it prevents and avoids losses for the Insured if the contract is not fulfilled.
- In case of non-compliance, the claim is issued and the compensation payment is made after 30 days.
- The Surety, can only be issued by Surety Insurance and Bonds, through intermediaries, ensuring their validity.
- It does not imply large economic losses, because with the payment of the premium it is enough to have the coverage.
- Guarantee instrument that will play a very important role in the economy of our country.
- It is a great alternative for all those people who seek to guarantee the fulfillment of an obligation, but do not count on a solidary obligation.
Do you want to know more about the Surety Insurance? Contact us, our specialized consultants will gladly provide you with more information.