- Legal Background
- Product Details
- Relative Industry
- Competitor Information
- Member Statistics
- AGCIA Insurance
Guarantee Insurance reduces the risk pertaining to commercial transaction. Incase a debtor (insurance contractor) causes damage to a creditor (insurant) by not implementing his/her duty or liability, the insurance company will indemnify for the loss, as stipulated in the insurance contract. Thus, guarantee insurance provides a convenient means to engage in economic activities in place of conventional personal·mortgage security.
Contract bond guarantees that Principal will perform all obligation set forth in the underlying contract. If the Principal fails to fulfill its duties, the Beneficiary may seek recovery from the Insurer. While all contracts may become the underlying contract for guarantee coverage, most commonly used products are associated with construction projects including bid bond, performance bond, advance payment bond, and maintenance(warranty) bond.
- Fidelity Bonds
Fidelity bonds provide coverage to employers in case an employee’cause damage to the employer through engaging in unethical and/or illegal behavior, such as theft, embezzlement, or breach of trust. Through fidelity bonds, employer may seek restitution for losses caused by the employee.
As a measure to protect public funds, many federal·state·local governments as well as courts require fidelity and/or guarantee bonds in order to engage in public services. Some examples include license and permit, judicial bonds in civil proceedings, etc.
- Social Protection
The guarantee & credit insurance also provides social protection through various products that back up the credit of an individual and/or small-to-mid sized businesses.
Credit Insurance is a “self-insurance”service where a contractor becomes the insured. It provides coverage for companies that provide goods and services to its customers without any collateral so as to insure against its customers’insolvency or delay of payment.
When a good or service is delivered to a buyer in commercial transaction, the supplier often takes account receivables instead of immediate payment, which is an outstanding invoice issued to the buyer. By guaranteeing the settlement of such invoice, the Account Receivable Credit Insurance assures for the loss incurred by the supplier when the buyer defaults in its account receivables.
Mortgage Credit Insurance provides coverage for the losses incurred by financial institutions in case a borrower fails to perform one’s obligation as stipulated under the loan agreement. Through providing minimum safety net for financial institutions, the Mortgage Credit Insurance supports the credit of individual borrowers and enables them to qualify for basic mortgage loans.