What are Insurance and Surety?

What are Insurance and Surety?

Used as an instrument for the guarantees of a person or company, the Insurance and Bonds are the tool that supports and supplies all those goods of its contractors, as well as providing their services.

These processes are carried out by means of contracts in which the beneficiaries will be established and thus stipulate all those agreed guarantees to which the corresponding company is bound and which it must fulfill as established by the established contract. A Bail Insurance is used by a surety that will be responsible for providing security on the compliance of both parties.

In our country, Insurance and Bonds represent a product of great importance, since it is the means by which you can guarantee that the company covers all that is agreed, in addition that its economic impact is aimed at customers who want to take care of their assets, with which they will obtain the certainty that these services are related to a personal interest for the insured.

We usually use a surety bond when we look for the conditions to be respected or we want to improve the terms in which a contract is found, because unlike the guarantees, this is carried out and according to an analysis that is based on the liquidity that a client has, since the insurances and bonds do not freeze or stop the resources that are included.

That’s why we tell you about the types of insurance and bonds that currently exist:

  • Insurance by contractual or administrative bond: This will have to comply with all the obligations assumed in relation to public or private beneficiaries.
  • Insurance and Bond for loyalty: It will be a guarantee that you will receive for the repairs of all the damages that may be caused by an insured and that has committed a crime known as patrimonial, either by fraud or abuse of trust.

Given this, you should also know about those who can acquire these services, since the granting of an insurance and bail regularly requests four specific aspects:

  • Nature on the obligation: This means that it will review all the legal and contractual requirements that have, thus identifying the appropriate conditions in relation to the term and the characteristics of obligation to be able to guarantee its grounds on termination, since all this is linked to the turn in which the client lives.
  • Moral quality of the contracting person: It is based on reviewing the historical reputation that the person has in relation to their contracts and obligations before creditors, therefore, if the latter has complied, they may obtain the service through bail bond insurance.
  • Technical and operational capacity : It is the capacity that there will be to do and culminate everything that has been requested in a contract, this will only be for companies that want to hire this service, since they will be asked for the capabilities and condition of their machinery, equipment, quality of logistics and organization.
  • Financial solvency: Aspect totally related to the facility or capacity to generate, obtain and use the resources that the person or company have to fulfill their obligations.

How does an Insurance and Surety company work?

How does an Insurance and Surety company work?

In the first place, its most important function is the one in which it will focus on making the corresponding mitigation towards the risks of non-compliance that the beneficiary has. All of its functions will be carried out by an insurance and surety company, after being authorized by the CNSF, from the perspective that is related to insurance, it will act as an intermediary between the insurance company and the same clients as the insurance company. they have hired, this so that the obligations that have to do with the economic nature of bonds are fulfilled.

But there are also other tasks performed by these companies, and that is why we tell you what they are:

  • They will have to propose insurance or guarantee services to their clients.
  • They will provide professional and personalized advice to provide tailor-made solutions for each person or company.
  • They will identify the insurance or contract that adequately covers all the risks to which a person or company is exposed.
  • You will share all the information with the insurers, this will be to determine the conditions and appropriate premiums for each client.
  • It will be who seeks the best quote on the insurance or contract, always agreeing on the coverage that is actually adequate.
  • Clarifies all doubts regarding the contract or policy purchased.
  • It will preserve, renew and also make modifications or cancellations of contracts or insurance policies and bonds.
  • It will be in charge of contracting bonds for those companies that need liquidity, solvency and efficiency in their operations.
  • It will identify all the financial and economic information of the trustor or joint obligor.
  • Will issue the bond policies to be able to guarantee the fulfillment of the obligations.
  • It specializes in bonds to obtain a high rank for industries such as construction companies, legal, governmental and hospital.
  • They will be those who receive inspections from the CNSF to ensure transparency about their activities.

What benefits do you offer in Insurance and Surety?

As an insured it is important that you know about the benefits you will get by having a specialized policy in surety bonds. We tell you a little about everything you will receive:

  • Security that the obligations of the contract will be carried out as agreed.
  • Guaranteed that the repairs of the damages.
  • You will avoid all kinds of economic losses.
  • When the claim or report is lifted, the compensation payment will be made within a maximum period of 30 days.

It is important that you know all these aspects, since a contract for insurance and bail plays an important role in your economy, representing significant changes in the insurance and surety sector.

Which companies handle Insurance and Surety?

Actually there are many insurance companies that have policies or coverage in Insurance and Surety, so the margin of options is quite broad, so you will have to seek mainly a professional advice to help you choose the best option for you to hire an appropriate plan and it suits your needs.