The insurance completes the existing CAR EAR insurance for construction and assembly. This product was developed to meet the needs of companies in Romania. Current legislative and economic context allows integration of the insurance into the category of eligible participation warranties for tenders, execution and performance of public procurement contracts.
This insurance is a basic accessory to a contract concluded between the Employer and the Contractor/Insured. OMNIASIG VIG assumes the payment or satisfaction of claims in the event of a proven fault or when the executor (contractor) does not fulfill their contractual obligations.
This new product targets companies in the construction sector, especially those who participate in public procurement procedures.
Bid Bond: dedicated to construction and industrial companies invited to attend auctions and must give, with their offer Bonds to ensure that they will not withdraw the offer during the auction and, if they win the auction, they will conclude contracts stipulated in the tender conditions.
Asigurarea de garantie privind buna executie a contractului (Performance Bond): a guarantee for the client, Beneficiary of the construction works, on fulfilling the obligations of the Contractor.
Advance Payment Bond: is a bond provided by the Contractor for the Beneficiary to guarantee repayment of sums advanced by the Beneficiary to the Contractor under the contract.
Maintenance Bond: is a bond that guarantees the fulfillment of contractual obligations related to the work performed during the testing period that follows physical completion of the work by contract.
Advantages and benefits
Contract warranty insurance comes in addition to CAR EAR insurance and has a number of important advantages for the insured:
- represents an alternative to letters of guarantee issued by banks, without blocking funds
- besides insurance protection provided, brings financial relaxation because the working founds are not affected
- recognized by public authorities organizing auctions
- easier access to finance
- facilitates participation in auctions the Insured