Surety insurance
Surety insurance is a performance guarantee. The insurer answers to a third party — a public body or a customer — if your company fails to meet a legal or contractual obligation.
It works much like a bank guarantee and is often used to obtain better commercial terms or to convey reliability and solvency, without increasing the company’s liabilities.
How it works
Your company (policyholder)
Takes out the policy and is the one that has to meet the obligation.
The party requiring the guarantee (insured)
The public body or customer that wants to be covered if your company does not perform.
The insurer
Issues the guarantee and pays the insured if there is a breach.
If the insurer pays, it then claims that amount back from your company. Surety does not cover your loss: it guarantees the other party that it will be paid.
Types of surety insurance
Provisional tender guarantee
Final guarantee for public contracts
Supplementary guarantee for public contracts
Advance payments on new homes
Customs guarantees
Grid access and connection
Travel agencies
Real estate agents in Catalonia
Contracts between companies
Have you been asked for a guarantee?
Tell us which one and we will help you provide it with surety insurance. No commitment.
Frequently asked questions
What is the difference between surety insurance and credit insurance?
Credit insurance protects your company if a customer does not pay you. Surety insurance protects a third party if it is your company that does not perform.
Does the insurer bear the cost if my company defaults?
It pays the beneficiary of the guarantee, but then claims that amount back from your company.
Can surety insurance be used for a public contract?
Yes. Spain’s Public Sector Contracts Act accepts it as a way of providing the final guarantee.
Which guarantees can be provided with surety insurance?
Among others, those required in public tenders (provisional and final), the refund of advance payments on new homes, customs guarantees and the grid access guarantee when it is lodged with the Caja General de Depósitos. Each one has its own requirements.
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