As far as constructions are concerned, it is common to be confused with the type of legal protection needed to guarantee compliance with the work contract concluded between the interested party and the contractor. Both Pólizas Surety as insurance policies have different features and functions, yet both are equally important at the time of a contract of this type.
What is a Bail Policy?
A Bond Policy is used to guarantee compliance with the agreed obligations, which must be reflected in the main contract. Through this guarantee instrument, the contractor assures that the advance payment that was given to start the works, will be used correctly (advance payment ). On the other hand, with a Compliance Bond, the good quality of the products and materials used is guaranteed, as well as the fact that the work will be carried out within the deadlines agreed in the main contract.
Many times, the works have certain imperfections that are not visible to the naked eye, but with the passing of a certain time they will be, for this purpose, a Security Bond of Hidden Defects is contracted.
How does an Insurance Policy work?
On the contrary, the Insurance Policies are intended to guarantee uncertain and future events and events that may cause minor or serious damage to the construction, such as an earthquake or earthquake. In this case, the Insurance Company would cover the damages presented by the property as a result of said loss.
By means of Civil Works Insurance, any damage that occurs to the project can be covered, as long as said damage is the direct consequence of an unpredictable and accidental event, such as a natural disaster. With an Insurance Policy, you can have the peace of mind that in case something like this happens, no extra expenses will be incurred to those contemplated for the construction of the work.
The most important thing when requiring the protection of any of these guarantee instruments is to have the advice of an Insurance and Surety Agent, who can offer us the type of product that best suits the needs of our project.
In us, we have strategic alliances with more than 25 companies, both in the insurance and surety sector and we can support you with the processing of the product you require.