Surety insurance is an insurance policy that protects companies from financial losses that may arise from obligations under surety bonds or guarantees.
In this case, the insurance company assumes the surety or guarantee and is liable for the loss if the company fails to meet its obligations.
With surety insurance, companies can preserve their liquidity and improve their credit rating, as they no longer have to pay upfront for the sureties and guarantees.
A company is unable to fulfill an order on time or in the agreed quality. The customer therefore claims damages against the company. The company has to pay a contractual penalty because it fails to meet the agreed delivery dates or does not complete the work properly. The bond insurance covers the damage.
Surety insurance is particularly suitable for companies that receive orders from public clients or large private companies, as a surety or guarantee is often required here.
Companies operating in the construction, trade or industrial sectors and working with high financial risks should also take out surety insurance.
This can also make sense for small companies if they do not want to burden themselves with high sureties and guarantees and want to improve their credit rating.
A good surety insurance should be flexibly adaptable to the needs of the company and ensure a quick and uncomplicated settlement in the event of a claim. Through an individual examination and consultation, we will find the right solution for you and your company.
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