Euroins insurance JSC launches sale of Guarantee insurance on the territory of Greece in partnership with A First and South British Capital
Euroins, in partnership with A First and South British Capital, has launched the sale of Guarantee insurance on the territory of Greece. This insurance is specific and is concluded in the form of a tripartite contract between the contracting authority, the contractor and the insurer.
Guarantee insurance cannot exist independently and is an integral part of a signed contract for the implementation of a public procurement. The term of validity of the insurance, unlike other standard insurances, can be different from one year. The risks that Euroins Greece will initially insure are up to 50,000 EUR, and sales revenues are expected to exceed 2mln EUR on an annual basis.
Guarantee insurance is an unconditional and irrevocable commitment made by the insurer and the contractor regarding the payment of compensation to the contracting authority in the amount up to the sum insured, in case the contractor has not fulfilled in full, partially or inconsistently with contract its guaranteed obligations.
The potential clients of Euroins Greece under this insurance have the opportunity to negotiate coverage for the following four risks:
• "Guarantee for participation in the tender"
• “Guarantee of good performance”
• “Advance payment guarantee”
• “Post-contractual obligation guarantee”.
Guarantee insurance has the following advantages over a bank guarantee:
• lower costs
• no blocking funds
• no pledge of assets and mortgage.
Guarantee insurance is suitable for public and field contracting authorities, such as ministries, judicial and executive authorities, town halls, municipalities, state institutions, agencies, commissions, hospitals, etc .; public enterprises performing field activities related to water supply, energy, transport, postal services, etc .; construction companies, architectural offices, IT companies, etc.