The insurance guarantee is a little known insurance and on the other hand has a very great importance.
Whenever you talk about insurance, most people think, at first, only about life, health and car insurance. However, one modality was developed exclusively for companies, with the intention of guaranteeing the fulfillment of the contractual obligations – a subject extremely relevant for businesses that want to aggregate values of stability and excellence.
In this context, the insurance guarantee arises. Modality that is able to guarantee the rights of the company and the insured himself. In order for you to better understand the issue, we have prepared an article with the main aspects that involve this type of protection. Follow us!
What is a security guarantee?
As we have pointed out above, surety insurance refers to a broader approach to fulfilling contractual obligations. Basically, it is geared to any type of operation where there is a relationship with a third party.
Imagine a buyer who pays all the purchase invoices every quarter. If on the payment date it does not meet the obligation, it may be that this fact totally compromises the company’s cash for the following period.
With the insurance guarantee, it is possible to guard against this type of question, since, if the buyer does not pay, the insurance partner will be responsible for the fulfillment of this contractual obligation.
Which companies can use this type of insurance?
As a rule, surety insurance serves a large part of the business that performs operations with third parties and needs to guard against noncompliance with obligations – we emphasize that it also serves for self-employed professionals.
See the main sectors that can benefit:
- Human Resources and Consulting;
- Condominium administrators and trustees;
What are the types of coverage?
In order for you to better understand how collateral can be applied in your day to day, we separate the main types of coverage that can be protected with this agreement. Look:
- construction, supply or service: contract that guarantees the indemnification of damages related to the non-fulfillment of responsibilities assumed by the supplier or service provider;
- payments: following the same line of the example discussed in the previous topic, this modality of coverage aims to ensure compliance with payments established in a contract;
- maintenance: this modality of coverage is responsible for securing indemnities arising from non-compliance with maintenance agreed in a contract. A common example is when the company hires software and does not receive the proper support that has been established by the product supplier.
Know the parties involved in the insurance guarantee
- Insured (Contractor) – In the private sector, the insured person is the creditor of the obligations assumed by the borrower in the main contract, that is, the one that contracts the construction of the work, the supply of the product or the rendering of service. In the public sector, it is the public administration or the granting power; It is the creditor and beneficiary of the policy;
- Borrower (Contracted) – who assumes to the insured the performance of the main contract, in accordance with the obligations formally determined between the parties;
- Insurer (viabilizer) – guarantees to the insured the payment of indemnification for non-compliance with the contract or competition notice; and
- Broker (Specialized Professional) – makes the business viable.
How to optimize results with the insurance guarantee?
Going through a situation where you expect compliance with an obligation and it does not occur can be extremely frustrating for a manager – and can even cause serious harm to the business.
The insurance guarantee protects the fulfillment of basically any obligations that the company contracts with third parties. Ideal to avoid the emergence of unforeseen activities. In this way, you add values of competitiveness and reduce the risks of the business in the market.
But what about you, reader? Already use some form of insurance in your activity?