The surety or surety insurance is the guarantee given when something has been agreed to affirm a commitment or the fulfillment of a promise.
The main objective of said insurance is to ensure that the commitments that have previously been agreed upon will be fulfilled in a given service. In the event that this does not happen and is infringed, the guarantee will take part of it and the victim (or whoever has relied on the agreement) may not be harmed by it, to the extent possible.
It is a tool used in Transactions, mandates and agreements between people, reducing the risk of non-compliance and maintaining a safeguard against any contingency that may arise.
The nature that defends the surety is of immediate availability, allowing the affected party to compensate itself if this insurance is activated.
Types of surety
The surety can be given in different ways, so we are going to tell you about the types of surety that we can find:
- Cash. It is the most common, in which a monetary amount is delivered or a storage area available when one of the conditions of the contract that covered the surety does not correspond to what was agreed.
- The endorsement. In this case, it will be a person who responds in case there is a part of the contract that has been breached. Such person may have a permanent or limited-time responsibility, as established.
- Surety insurance. It is a contract made by the insurance company in which the affected party is compensated in the event of non-compliance. The amount will be adjusted depending on the limits of the contract and what is established by law.