What is Surety Bond / Bank Guarantee?

Surety Bond or Bank Guarantee is a general insurance product that serves as a solution to risk of losses that may be experienced by one party in the contract due to default.

There are three parties involved, first party receiver of guarantee (obligee / creditor), guaranteed party (principal / debtor) and the surety. Obligee is an project owner while the principal is an executing contractor.

Surety Bond or Bank Guarantee is required in the contract between the project owner and contractor. Where the owner wants to ensure that the contractor can complete the work in accordance with the contents of the contract. As a binder, the project owner requests financial guarantees to the contractor in the form of cash or assets owned by the contractor at an agreed value.

Unfortunately, for the issuance of a BANK GUARANTEE, a cash guarantee or asset is needed. This is an additional burden for the company.

To reduce the burden on the company, it turns out that there is a solution that is with the CONTRA BANK GUARANTEE. Cooperation between insurance companies and banks. Where the Bank issues Bank Guarantee by using insurance company funds as collateral. Contractors simply provide a small portion of the guarantee fund, pay insurance premiums and bank fees.

To take care of the CONTRA BANK GUARANTEE is not easy because it combines the bank and insurance. For this reason, the services of experienced brokerage companies and insurance consultants who have good relations with banks and insurance.

L&G is a very experienced insurance brokerage company. Has successfully issued thousands of CONTRA BANK GUARANTEE guarantees for projects throughout Indonesia.

For more information, please contact L&G Insurance Broker, Office: 021 22212345, halo@cakraprananusantara.com, or Call Meli Hp/Whatsapp +62 812-8398-7016