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Contractual Surety Bond

About the Insurance

Contractual Surety Bond is an economic and effective solution to ensure fulfillment of obligations assumed by the hired company (Policyholder) towards the person who hired (Insured), in contracts of construction, supply of goods and equipment, provision of services and public service concessions, as well as participation in competitions and bids that precede these contracts.

Contractual Surety Bonds count on 3 parts:

Insured: It is the creditor of the obligations assumed by the Policyholder in the Main Contract. It can be the Public Administration or the Granting Authority, Recipient of the policy, owner of the work, or the person who hired.

It is the party (individual or legal entity) whose rights are guaranteed by Sombrero Seguros Surety Bond policy.

Policyholder: It is the hired company responsible to fulfill the obligations indicated in the contract to be guaranteed by the insurance company.

Insurer: Sombrero Seguros is the one who guarantees, as established in the policy, that in the event of non-compliance with the obligations assumed by the Policyholder in the Main Contract, the Insured will be compensated for any loss.

In the Contractual Surety bond, the following types can be hired:

Bid Bond

It is usual in public and private tenders. It serves to guarantee that the winning bidder maintains its proposal and signs the contract under the conditions presented and within the period established in the public notice.

Construction, Supply or Provision of Services Bond

The Performance Bond assures that the hired company will fulfill its obligations assumed in contracts for construction, supply, or provision of services. There is still the possibility of additional coverage for labor claims aiming at greater security for the one who has been hired.

Additional Coverage for Labor and Social Security Claims

It can be hired in conjunction with the Surety for Construction, Supply, or Provision of Services. It guarantees indemnity to the Insured from losses demonstrably suffered concerning the obligations of a labor and social security nature attached to the Policyholder.

Payment Retention Bond

Guarantees indemnity up to the limit defined in the policy for any eventual losses caused by non-compliance with contractual obligations linked to withholding payments in construction, supply, and provision of service contracts.

Advanced Payment Bond

Widely used in construction contracts, it ensures that the values in advance by the ones who have been hired are intended for immediate execution of the contractual object, that is, the accomplishment of the foreseen stage until its conclusion.

Corrective Maintenance Bond

Also widely used in construction contracts, it guarantees the execution of the corrective actions indicated by the ones who have been hired, and necessary for the repair of problems that occurred during the contract, at the sole responsibility of the policyholder.

Customs Bond

Used in temporary import operations of machines, equipment, parts, and components. Guarantees to the Federal Revenue the payment of import taxes, suspended by the inclusion of the policyholder under Special Customs Regime, in case policyholder fails to comply with the conditions that allowed the benefit of suspension.

Real Estate Bond

It guarantees indemnity to the acquirers of autonomous units or the owner of the land (in the case of real estate exchange) if the developer or construction company fails to build and deliver the project, as established in the Main Contract.

Payment Bond

Used to guarantee indemnity to the Insured, up until the value of the surety set on the policy, for damages arising from the lack of payment of the pecuniary installments due to him and not paid by the Policyholder, as agreed in the guaranteed contract.

(See the conditions of the product). The acceptance of the insurance will always be conditioned to the analysis of the risk and will require the Policyholder proof of technical and financial capacity, as well as, to comply with any registration and underwriting requirements. The Product registration is automatic and does not represent approval or recommendation by Susep. The insured may consult the registration status of his insurance broker, on the website www.susep.gov.br
Susep Process #: Public Sector-> 15414.646336/2021-61 / Private Sector -> 15414.646333/2021-28

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