Although in Mexico, bonds have been used for a long time, the Surety Insurance, arises as an additional guarantee instrument that will exist in harmony with the Sureties. The Surety Insurance is a guaranteed contract whose objective is to ensure compliance with the obligations established in a contract, since in case there is a breach of it, the Surety Insurance will cover the resulting losses.
Although its function is similar to that of bonds
Contracting a surety insurance can have many advantages, mainly that it will not require a solidary obligation and that being a contract as such, it will not require another contract for its existence. In case of a breach of contract, payment will be made after 30 days, once the documents provided in the certificate have been presented.
Something very important is that the Surety Insurance , being a guarantee instrument, can only be issued by the Surety and Surety Insurers, through its intermediaries.
Hiring a Surety Insurance , provides individuals and companies, the guarantee that in the event that a breach of contract is incurred, all losses will be covered by the insurance company, avoiding losses for the contracting party.
The implementation of the New Law of Insurance and Surety Institutions will be historic for the insurance sector of our country and it is believed that the Surety Bond will play a very important role in the economy.
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