GUARANTEE'S
"Today, is the not the only guarantee you can afford."
Guarantee insurance means that you get a guarantee from an insurance company instead of a bank. This frees up the bank's guarantee limit for your company's growth investments.
Guarantee insurance is a good alternative to bank guarantees. Companies use it as security doing business both in domestic and international business.
Our insurance brokers know the market well and can assess for you what kind of guarantee insurance your company needs to help your company reach its full potential faster.
Guarantees Offerings
Credit Guarantee
A credit guarantee is a form of insurance that helps to protect the interests of a seller from the chance of non-payment by a buyer. This type of coverage is often utilized when goods are imported, affording the exporter a degree of protection that would be difficult to achieve otherwise.
While the focus of a credit guarantee is to protect the interests of the seller or exporter, the terms are also in the best interests of the buyer.
Construction Guarantee
Construction Guarantees are frequently issued in construction agreements to ensure that the employer is safeguarded in the event that the contractor causes a delay, or a disruption, in the completion of the works.
If you are in the construction business and a big contract is awarded to you, you may be required to provide guarantees to the employer. The Construction Guarantee basically indemnifies the employer (or owner) for damages – if the contractor does not perform as agreed or defaults.
Performance Guarantee
Building contractors are often required to provide Performance Guarantees after being awarded a contract. Performance Guarantees provide the Employer with security should the Contractor not perform his obligations or complete the work, as agreed, in the construction Contract.
We offer affordable & flexible Performance Guarantees quotes from a variety of insurers, with solutions for all segments of the civil & construction industry – from the small bakkie-builder, right up to large, national companies.
Fuel Guarantee
In South Africa, by law, petrol cannot be bought on credit by a fuel retailer. Fuel companies, such as Sasol Oil, BP Southern Africa, Total South Africa etc. can supply Fuel Retailers only on the following basis:
- Cash up front / Pre-payment, or
- Guarantee issued in favor of the fuel company to act as security against any payment default by the retailer.
A guarantee enables the fuel company to grant the retailer a credit facility, allowing the retailer to pay for the fuel after delivery, assisting the retailer in managing his cash flow. This guarantee extends to cover other trade receivables the retailer may be obligated to pay the fuel company for, in terms of their retailer or lease agreement. Trade receivables can include rental of the premises, royalties, rates and taxes, lubricant purchases etc.
Rental Guarantee
Rent guarantee insurance is a risk-management product that protects landlords against loss if a lessee defaults. This insurance pays the monthly rent for a set period of time if the covered tenant stops making payments.
Rent guarantee insurance offers protection to the landlord, rather than the tenant. If the tenant stops paying rent, the insurance carrier, acting as guarantor, covers the rent for the period of time specified in the contract. Tenants who stop paying remain liable for the rent owed and any legal fees. The guarantor can start legal proceedings against a delinquent tenant, including eviction and reporting to credit agencies.
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