They are contracts that guarantee compliance with obligations derived mainly from other contracts, agreements or laws. Through such a contract, a Surety Institution commits itself to a third party (beneficiary) to comply with an obligation, if the principal debtor (or guarantor) does not comply with it.
Unlike Insurance, the Bond is not an insurance subject to risks for uncertain acts statistically measurable, but it is a guarantee that implies that in case you have to face the obligation on behalf of a debtor who did not comply , the Bonding Institution will seek to recover the amount of claim paid to the beneficiary.
They guarantee the fulfillment of general obligations between two parties, which, according to their activity, conclude contracts that must be guaranteed for security and mutual trust. Most of the transactions are issued under this type of bond.
It guarantees the proper investment and amortization of the advance payment that the contractor or supplier receives, to execute a work or purchase of raw material or equipment, etc.
Ensures the exact fulfillment of the obligations contained in a contract, order, agreement, etc.
It guarantees the good execution or quality of the work carried out or referring to equipment or materials supplied in which there appear defects of construction, labor or poor quality of the materials used, well known as hidden defects; the guarantor committing to repair them or to compensate for the damages caused.
This guarantee guarantees the possible liabilities that in labor matters (employer-employee quotas) the contractor and / or constructor in charge will cease to render, with respect to a work assigned by a Beneficiary.
It guarantees that the supplier respects the quoted price, as well as the conditions under which he is presenting his proposal. If not, the surety would pay for it the amount stipulated.
It is responsible for ensuring the exact payment of monthly income derived from the rental of personal property (machinery or equipment) or real estate (home-room, commercial premises, land, industrial buildings, etc.). As an option, debts may be guaranteed for electricity, water, gas, telephone, etc. and damages to property installations due to improper use.
Commercial activities between different countries make this type of bond, as a consequence of globalization, an indispensable and increasingly requested requirement.
The international bond is used to guarantee the obligations between people who, under contract, establish some type of operation such as construction of works, provision of services and purchase-sale of goods, among others.
It is for a single employee, in a specific position, generally related to key operations, for example cashiers, drivers, collectors, heads of credit and collection, storekeepers, accountants, salespeople, sales agents, promoters, messengers, watchmen, etc.
It is used when it is intended to consolidate only a group of employees, with different positions and different individual amounts.
This type covers the entire staff of a company, but can also cover only administrative employees without considering commission agents, sales agents or people with similar functions.
It applies to people with limited liability and by strata. In this policy you can group the administrative staff of a company in different levels of responsibility, with amounts allocated for each level.
It is issued to cover responsibilities of those employees who, by exception and risk, are different from the general staff of the company.
It is special for all sellers or commission agents or people who develop similar activities in a company with a minimum of five people.