Insurance guarantee

Insurance guarantee is an excellent tool for all the companies that use business bank loans, participate regularly in trades and carry out contracts for other contractors. The warranty is a tool through which the company does not have to freeze its financial assets for, for example, a bank loan security or a tender deposit payment.

 

If we are going to compete in tenders it is worth buying a guarantee of  the deposit payment. In case of big tenders security payment means lot of money and during the tender the money must be frozen. Meanwhile, instead of cash, we can provide an insurance guarantee. The same solution applies to advance payments in various services as well as bank loans - the bank treats a guarantee as a loan security.

The contract is usually settled for one year. Premium depends above all on the scale of the company: what amount of goods and services the company sells. The contract provides protection against unfair partners but also against the bankruptcy or insolvency of the contractors. We are obliged to inform the insurer of any circumstances  that can cause greater probability of risk. Remember that in addition to compensation, the insurer may also monitor the financial situation of our trading partners. Thus we can react in advance to any adverse events.

When it comes to an event, the receiving party shall notify the insurance company, not the person who signed the contract. For example, in case of providing tourist services, the guarantee's beneficiary is the Marshal of the Province. In case of a credit agreement - the bank. This does not mean that we do not have any obligations to the insurance company. We should always be ready to provide the insurer with all the necessary information and documents that may help in the calculation of damages.