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Surety insurance
Strengthen your agreements with surety bond security
Key Coverage Highlights
Know morePerformance 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 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.
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.
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.
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.
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.
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.
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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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PRIME Inspection app helps to evaluate quality of your property (Shop, Office, Plant or Others) having SI upto INR 50 crs. It is simple to navigate having multiple Q & A designed for client
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Start with a detailed health evaluation and sync your medical records & wearables for real-time data on activity, sleep & vital metrics.
Step-by-Step Guide
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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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.
Raj Kapoor
Gujarat
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.
Meena Sharma
New Delhi
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.
Rajesh Malhotra
Andhra Pradesh
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.
Rohit Mehta
Uttar Pradesh
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.
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Rajasthan
15th Nov 2024
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