What is the Guarantee Insurance?
About the Guarantee Insurance
The Guarantee Insurance is another name a surety bond, such as a payment bond or a performance bond. This type of guarantee can be in one of two ways. The first way is a standard performance bond that we see here in the U.S. These performance surety bonds are guarantees that a company will perform according to an underlying construction contract. In this type of bond, the owner will have assurance from the surety that they will be able to finish the job on time and in the manner described in the contract.
This can be compared to a financial guarantee. A financial guarantee does not have an underlying contract that needs to be fulfilled. Instead, the financial guarantee can be called at any point. There does not have to a problem with any underlying agreement.