Surety
We have a wide range of options and offer an agile service supported by the financial strength that backs the company. These qualities allow us to be the best option in the market to meet your surety needs.
Professional
These types of bonds cover the clients of Public Notaries, Certified Public Accountants, Customs Agents, Brokers, Agencies, and Insurance Agents against undue acts performed by some of these professionals in the exercise of their profession and also cover third parties and State authorities. The amounts of the bonds are established by the laws, regulations, or administrative decrees, as the case may be.
Administrative
- Customs, In Bond, and Tax Species Bonds cover the payment of the respective taxes and fees, and the corresponding authorities determine their amounts and periods of validity. They are usually granted for specific periods.
- Bonds for specific charges are also established by governmental decrees or agreements as to amount and term; they may be for an indefinite term.
- Alcohol Bonds guarantee not only the payment of the tax but also the proper use of the product, according to its destination.
Contractual
This is the richest class of guarantees known in the Nicaraguan market. For this reason, we have subclassified them to provide adequate descriptions:
Bid Bond
This bond guarantees that the principal will maintain the conditions and price of their offer made to the owner of the work or applicant of the service in the case of being awarded the respective contract. In some cases, this Bond also guarantees the performance by the Secured Party in favor of the Beneficiary of the Performance Bond if it is required upon being awarded the Contract. If the principal fails to perform, the insurer must pay the amount of the bond. This is generally a fixed sum or a percentage lower than 10% of the amount of the contract bid.
Performance Bond
This bond guarantees that the principal or contractor will faithfully comply with the conditions of the contract for the work, service, etc., and in the event that he fails to do so, the insurer will pay the bond or may replace the principal or contractor with another contractor to complete the work or provide the service. The amount of the bond generally fluctuates between 15% and 30%. There are exceptional cases in which higher percentages are requested.
Payment or Advance Payment Bond
Under this contract, the insurer is obligated to pay the owner the amount owed by the contractor for the first payment or advance payment of the contract price, up to an amount not in excess of the bonded amount. In this type of contract, it is established that this amount will be reduced as the work or service progresses since a clause is stipulated for the deduction of the payments to the contractor in order to replace the advanced amount of the price. The advanced amounts are generally between 10% and 20%.
Maintenance or Redhibitory Defects Bond
Once the work or service has been completed, the owner is interested in guaranteeing that the work or service has been properly performed and therefore requests a guarantee from the contractor that any defects in the work performed will be corrected by the contractor. Up to an agreed amount, which is generally 5% of the value of the work or service, the insurance company covers the owner against this eventuality.
Supply Bond
This bond guarantees that a merchant or industrialist will deliver or supply to the owner or creditor a set of goods, merchandise, materials, articles, provisions, or supplies for the price and at the time established in the respective purchase and sale contract, and in the event that the principal fails to do so, the insurer will pay the sum bonded or may choose to fulfill the contract through another merchant or industrialist.
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