DEPOSITS & SURETIES

Surety bonds and surety bonds are instruments by which the beneficiary guarantees itself to the contractor for the contractor’s obligations under the terms of the contract.

Area Brokers Industria is recognized among the leading brokers in the bail and surety insurance market. Since its inception in 1997, Area Brokers Industria has developed important working relationships with major national and international insurance groups, which today enable us to support clients in finding the Surety Bonds necessary for the best development of their business.

A surety bond is a guarantee given by a person (surety) who, by personally obligating himself to the creditor, guarantees the performance of an obligation of another.

A surety bond is security that can be in cash or securities, but can also be given in the form of an insurance (or bank) surety bond to guarantee the performance of an obligation.

A surety bond is a guarantee given by a person (surety) who, by personally obligating himself to the creditor, guarantees the performance of an obligation of another.

An insurance surety bond, also known as a “surety policy,” is a type of insurance that provides a financial guarantee to one of the parties involved in a contract or agreement. Usually, there are three parties involved in an insurance surety bond:

• • Guarantor (insurer): This is the insurance entity that issues the surety policy. The insurer agrees to insure the beneficiary (often a company or individual) against financial loss in the event of default by the principal.
  • Contractor: This is the party requiring the surety bond. It may be a contractor, contractor, or other party that needs to demonstrate its ability to meet contractual or legal obligations to the beneficiary.
  • Beneficiary: This is the party protected by the surety bond. The beneficiary is usually the entity or individual who entered into the contract with the principal and who requires the surety bond as security in case the principal fails to fulfill its obligations.

How the insurance surety bond works:

The contractor approaches an insurance company and requests an insurance surety bond to guarantee the fulfillment of its contractual or legal obligations to the beneficiary.

The insurer assesses the principal’s financial situation and the risk associated with the obligation to be met by the policyholder.

If the insurer agrees to issue the surety bond, the policyholder pays an insurance premium in exchange for the coverage.

Once the surety bond is issued, the beneficiary is protected in case the contractor fails to fulfill its obligations. If this happens, the beneficiary can make a claim for payment to the insurer to cover the losses incurred.

The insurer examines the claim and, if it finds it to be valid, pays the beneficiary the amount specified in the surety bond.

In summary, the insurance surety bond offers financial protection to the beneficiary in case the principal fails to meet his or her contractual or legal obligations. This type of insurance is often used in industries such as construction, contractors, and other situations where it is necessary to provide financial security to ensure compliance with agreements.

Area Brokers Industria provides the most suitable contractual terms and conditions in taking out insurance surety bonds for the various sectors of the economy and public administration, ranging from industry to transportation, health care to services, culture to tourism.

In addition to obtaining the insurance surety bond for your company or a client, we also select the best ten-year posthumous policy required under LD. 122/2005.

• • INSURANCE GUARANTEE for advance disbursement of public grants;
  • GUARANTEE FOR VAT REFUND Quarterly, group, tax account Getting a vat refund through an insurance surety bond is the most cost-effective way for creditors;
  • INSURANCE GUARANTEE REQUIRED FOR REGISTRATIONS TO TRUCK REGISTERS Are you a trucking company? Do you work in the armed security or waste cycle industry? Compliant surety bonds for registration or renewal with all professional registries;
  • INSURANCE GUARANTEES FOR BUILDING: surety to guarantee the deferment granted for Urbanization Charges, Construction Costs, policies for advance deposits or for Real Estate exchanges, Ten-year posthumous, insurance surety, final surety bonds, are dealt with by us on a daily basis.

A surety bond is security that can be in cash or securities, but can also be given in the form of an insurance (or bank) surety bond to guarantee the performance of an obligation.

In this article, we explain in detail how an insurance bond works.

The global market has exponentially increased the business opportunities of our Enterprises. At the same time, the opening to new markets has created, against the possibility of realization approx.
important initiatives and works, the necessity, on the part of the Enterprises, of the issuance of surety guarantees. Area Brokers Industria in relation to the needs imposed in this regard by the market, formed a
working group with specialized professionals in the field to source the best solutions in the insurance market.

• • Provisional bail bonds (for participation in tenders);
  • Final surety bonds for the proper performance of works, services or supplies (contractual fulfillment following the award of a contract);
  • Urbanization bonds;
  • VAT refund;
  • Accruals of tax debts;
  • Guarantees for the good upkeep of the premises (vis-à-vis individuals as a result of property rental).

What documents are needed to take out a bail bond policy? We list some of the main documents needed to instruct the file for the issuance of the surety bond.
Documents to be sent:

• • Duly completed surety bond application form;
  • Copy of the document/deed from which the surety bond is required;
  • Copy of the Chamber of Commerce certificate (in the case of companies/firms);
  • Copy of ID;
  • budget last 2 years (in case of company) and possible interim;
  • Modello Unico (in the case of companies/firms).

In the event that the financial statements or otherwise the aforementioned documents show findings that are not commensurate with the amount of the surety bond requested, one or more co-obligors should be named by providing at least the latest Unico form submitted from which the assets of the same and photocopies of their identity documents are shown.

Area Brokers Industria is recognized among the leading insurance brokers in the bail bond and surety market. Since its inception in 1997, Area Brokers Industria has developed important cooperative relationships with major national and international insurance groups, which today enable us to support clients in finding the Surety Bonds necessary for the best development of their business.
Area Brokers Industria has a specialized Team of professionals at your disposal. Fill out the form below to get more information and request a free quote.