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Surety insurance

Surety Insurance

OfficeInsurance

Key Features

Strengthen your agreements with surety bond security

Key Coverage Highlights

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  • Performance Guarantee

Covers financial loss if contractual obligations are not fulfilled

  • Comprehensive Coverage

Protects both commercial and contractual surety requirements

  • Flexible Policy Duration

Available for short-term, annual, or long-term (up to 5 years) tenures

  • Creditor Protection

Safeguards one party (the creditor) from losses due to contract default of the second party (principal debtor/contractor)

  • Alternative to Bank Guarantees

Provides a secure substitute for traditional bank guarantees

Inclusions

What’s covered?
  • Advance Payment Bond

Protects funds advanced to a contractor at project start, covering the full amount if they default

  • Bid Bond

Ensures the bidder enters the contract if awarded and compensates if they fail to do so

  • Contract Bond

Guarantees the contractor fulfills obligations to the public entity, developers, subcontractors, and suppliers

  • Customs and Court Bond

Ensures payment of public dues for court cases or losses resulting from incorrect procedures and customs clearance

  • Performance Bond

Protects the obligee if the contractor fails to complete the bonded contract

  • Retention Money

Part of the contractor's payment is held until the project is successfully completed

  • Note

Please refer to policy wordings for detailed list of inclusions

Exclusions

What’s not covered?
  • Force Majeure & Other Specific Events

No coverage for events beyond control and any specific events as agreed in the contract

  • Liability Changes

Excludes changes to the debtor’s liability, including third-party claims due to negligence or omissions

  • Geographical Limitations

Coverage is not available for assets or commitments outside India

  • Business Classification

Surety Insurance falls under the miscellaneous insurance category

  • Note

Please refer to policy wordings for detailed list of exclusions

Additional Covers

What else can you get?
  • Maintenance Bonds

Cover workmanship and materials for a specified period after the project is completed

  • Subdivision Bonds

Guarantee that developers will make improvements to subdivisions, such as streets, sidewalks, and sewers

  • Supply Bonds

Ensure that suppliers will deliver materials as per the contract terms

Surety Insurance for Contractual Assurance and Risk Mitigation

Surety Insurance protects against the risk of non-performance in contracts by guaranteeing that contractors, principals, or suppliers will meet their obligations. This policy offers financial security to the obligee if the principal defaults, covering performance bonds, bid bonds, and other contractual requirements. Surety Insurance ensures businesses can fulfill their commitments, safeguarding their interests and maintaining trust. With Surety Insurance, businesses can mitigate the financial risk associated with contractual obligations, promoting smooth contract execution and enhancing credibility in the market.

What is Surety Insurance?

Surety Insurance is a specialized bond that protects one party (the obligee) from financial loss if another party (the principal) fails to meet their contractual obligations. This policy involves three key parties: the obligee (the one requiring the bond), the principal (typically the contractor or supplier), and the surety (the insurer). It provides a financial guarantee that the principal will perform as agreed. If the principal defaults, the surety will step in to cover the loss, ensuring the obligee is compensated. Surety bonds are commonly used across industries such as construction, legal services, and international trade. These bonds ensure that businesses fulfill their contracts according to the specified terms and conditions. By opting for Surety Insurance, companies gain confidence in their ability to meet obligations while offering clients protection, which ultimately fosters trust and smooth business operations.

Types of Surety Insurance

Surety Insurance comes in various forms, each designed to address specific needs and risks in different contractual situations. Below are some common types of Surety Insurance: ● Performance Bond: Guarantees that a contractor will complete the work as agreed. ● Bid Bond: Ensures the bidder honours their offer and enters into a contract if awarded. ● Advance Payment Bond: Protects funds advanced to a contractor at the beginning of a project. ● Contract Bond: Ensures a contractor will fulfill obligations towards subcontractors, suppliers, and the public entity. ● Retention Money: Protects funds held back until the successful completion of a project.

Why Do You Need Surety Insurance?

Surety Insurance is crucial for mitigating financial risks related to contract breaches. Whether you're a contractor, supplier, or business owner, this coverage ensures that your obligations are fulfilled, offering protection against potential financial losses. It also serves as a trust-building tool, assuring clients and partners that you have a reliable guarantee in place to meet your commitments. Especially valuable in industries like construction, supply agreements, and government contracts, Surety Insurance helps safeguard your reputation and provides peace of mind. By having this coverage, you can confidently take on contracts, knowing that any unforeseen issues will be handled efficiently, allowing you to focus on successful project completion and maintaining strong business relationships.

Features of Surety Insurance

Surety Insurance offers a comprehensive set of features designed to protect businesses and ensure the smooth execution of commercial contracts. Key features include: ● Performance Guarantee: Ensures that the contractor completes the work as per the contract terms, providing peace of mind to all parties. ● Flexible Policy Duration: Available in both short-term and long-term options, allowing businesses to choose the coverage that suits their project timeline. ● Credit Protection: Safeguards the obligee from financial losses if the contractor defaults, providing a safety net. ● Alternative to Bank Guarantees: Offers a cost-effective and accessible alternative to traditional bank guarantees, making it easier for businesses to secure contracts. ● Comprehensive Coverage: Protects various aspects of the contract, including advance payments, bid bonds, and retention money, ensuring complete risk protection.

Benefits You Deserve

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Compliance Assurance

Ensures regulatory compliance, offering peace of mind to all parties

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Increased Credit Capacity

Surety bonds free credit capacity, improve cash management

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Risk Mitigation

Protects obligee from losses if principal fails contractual obligations

Benefits of Surety Insurance

Surety Insurance provides numerous benefits for businesses involved in contracts. Key advantages include: ● Risk Mitigation: Reduces financial risks arising from the non-performance or default of contractors or suppliers. ● Trust Building: Instills confidence in clients and partners, ensuring that contractual commitments will be met. ● Creditor Protection: Ensures creditors are shielded from financial losses caused by contract breaches. ● Legal and Financial Security: Offers legal protection and financial backing, ensuring smooth contract execution. ● Increased Opportunities: By offering credibility and security, Surety Insurance opens doors to more business opportunities, helping companies expand their reach.

Download Policy Document

Get instant access to your policy details with a single click.

Why Choose Bajaj Allianz General Insurance for Surety Insurance?

Bajaj Allianz General Insurance offers an essential safeguard against the risks associated with contractual defaults. By providing robust coverage, Surety Insurance ensures that projects proceed without interruption and that both parties fulfill their obligations. It provides peace of mind, knowing that financial losses resulting from non-performance will be compensated. Whether you're a contractor, supplier, or business, Surety Insurance acts as a reliable tool to protect your interests and build credibility, enabling you to secure contracts with confidence.

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Step-by-Step Guide

To help you navigate your insurance journey

How to Buy

  • 0

    Visit the Bajaj Allianz General Insurance website

  • 1

    Fill in the lead generation form with accurate details

  • 2

    Get quote, make payment and receive the policy documents

How to Renew

  • 0

    Contact the Policy Issuing Office

  • 1

    Review expiring policy and share necessary details

  • 2

    Receive renewal quote

  • 3

    Make renewal payment

  • 4

    Receive the renewed policy documents via email

How to Claim

  • 0

    Contact us through our customer service touchpoints

  • 1

    Submit the claim form along with the necessary documents

  • 2

    Provide details of the incident and any supporting evidence

  • 3

    Cooperate with the claims investigation process

  • 4

    Receive the claim settlement as per the policy terms

Know More

  • 0

    For any further queries, please reach out to us

  • 1

    Toll Free : For Sales :1800-209-0144

  • 2

    Email ID: bagichelp@bajajallianz.co.in

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What Our Customers Say

Business Eligibility

The policy caters to businesses, from small shops to large commercial establishments. Coverage is designed to protect property, stock, and essential business assets.

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Raj Kapoor

Gujarat

4.9

22nd Dec 2024

Coverage Benefits

The policy provides coverage against fire, burglary, natural disasters, and accidental damage. It ensures complete protection for business premises and assets, giving peace of mind to business owners.

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Meena Sharma

New Delhi

4.7

10th Jan 2025

Buying Bajaj Allianz Commercial Property Insurance

Buying my Commercial Property Insurance from Bajaj Allianz was effortless. The process was clear, quick, and hassle-free. I received my policy instantly, ensuring my business is well-protected. 

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Rajesh Malhotra

Andhra Pradesh

4.8

5th Feb 2025

Customisation and Add-Ons

The policy offers various add-ons like loss of rent cover, debris removal, and architect fees, providing enhanced protection tailored to your business needs.

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Rohit Mehta

Uttar Pradesh

4.9

5th Oct 2024

Claim Settlement Process

Bajaj Allianz ensures a quick and transparent claims process. With proper documentation, claims are processed efficiently, minimising business downtime.

alt

Anjali Verma

Rajasthan

4.8

15th Nov 2024

FAQ's

Who can avail of this policy?

This policy is designed for jewellers, manufacturers, licensed pawn brokers, and diamantaires

Are there any exclusions under this policy?

Yes, the policy has specific exclusions such as loss during processing, mysterious disappearance, theft by family members or employees, wear and tear, and more

Can the policy be customized?

Yes, the policy offers flexibility and can be customized to suit the specific needs of the business

How can I file a claim?

To file a claim, you need to notify Bajaj Allianz as soon as possible, provide necessary documentation, and cooperate with the claims process

What is the process for renewing the policy?

The policy can be renewed by paying the renewal premium before the expiry date. Bajaj Allianz may also send reminders for renewal

Is there coverage for stock during exhibitions?

Yes, the policy provides coverage for stock while it is displayed at trade shows or exhibitions

Why is MSME insurance important?

MSME insurance is important because it helps protect businesses from financial losses due to unforeseen events such as property damage, liability claims, and business interruptions.

What types of coverage are included in an MSME insurance policy?

More MSME insurance policy usually includes coverage for property damage, business interruption, employee-related risks, cyber risks, etc. The specific coverage can vary depending on the insurer and the needs of the business.

How can an MSME determine the right amount of coverage needed?

To determine the right amount of coverage, an MSME should assess its specific risks, the value of its assets, potential liabilities, and the cost of business interruptions. Consulting with an insurance advisor can also help in customising the policy to meet the business's unique needs.

What factors affect the premium of an MSME insurance policy?

The premium for an MSME insurance policy is influenced by several factors, including type of business, size and location of the business, coverage limits, deductible chosen, and business's claims history. High risk businesses or those with a history of claims may face higher premiums.

How can an MSME file a claim under their insurance policy?

MSME should notify their insurer as soon as possible after an incident occurs. The business will need to provide details of the incident, supporting documentation (such as photos, receipts, or police reports), and cooperate with the insurer's investigation. The insurer will then assess the claim and provide compensation based on the policy terms.

How do I file a claim under the MSME insurance plan?

To file a claim, contact the claims department via phone or email, provide the necessary documentation, and the insurance provider must guide you through the process.

What documentation is required to file a claim?

Required documents may include a completed claim form, proof of loss or damage, police reports (if applicable), and any other relevant documentation. It is recommended that you reach out to your insurance provider to get accurate information.

How long does it take to process a claim?

Claim processing times vary depending on the complexity of the claim; it is suggested that you ask the insurance provider about the details and the expected time for the claims.

What should I do in case of theft or burglary?

Immediately report the incident to the police, secure the premises, and contact your insurance provider to initiate the claim process in case of theft or burglary.

What are the common exclusions in MSME insurance when filing a claim?

MSME insurance exclusions usually include losses due to war, nuclear risks, wear and tear, intentional damage, and illegal activities. Refer to the policy document for a detailed list of exclusions.

How do I renew my MSME insurance plan?

You can renew your policy by contacting the customer service team or through online portal of your insurance provider. It is usually preferred before the policy expiration date.

Can I make changes to my coverage during renewal?

Yes, you may review and adjust your coverage options during the renewal process to ensure they meet your current business needs.

What happens if I miss the renewal deadline?

If you miss the renewal deadline, your coverage may lapse, leaving your business unprotected. It's important for your financial security to renew on time to maintain continuous coverage.

Are there any discounts available for policy renewals?

Yes, you may be able to avail some discounts while renewing your policy, including loyalty discounts for long-term customers. Contact your insurance provider to learn more.

Can I switch to an MSME insurance from another insurer?

No; you need to buy another MSME insurance from a different insurance provider if you feel that your current MSME insurance plan isn’t providing ample coverage.
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