Insurance Guarantee Specialists
Diversity of product coverage, efficiency of services and capacity for immediate response through a professional, multidisciplinary team offering a customised solution for every guarantee and bond requirement.
Our Services
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Solvency Guarantees are evergreen in nature. This means that they do not expire and only lapse once returned to the Guarantor. These types of guarantees are normally issued to secure an account registered by the client with another company. These guarantees are issued in lieu of cash security.
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In the Construction Industry, Employers (also referred to as the Beneficiaries or Principals) require certain assurances that contractors will deliver a specified quality of work within a given time frame. Guarantees are a contractual requirement within the construction award process. Employers are constantly faced with the risk that construction companies will fail, become insolvent or default on the performance of a stated project; they therefore look to Insurers to manage these risks more effectively.
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Also known as Student Fee Protection Guarantees. The Department of Education (DOE), requires all training institutions to lodge a guarantee with the DOE confirming that if an institution is unable to render a course to a student after he/she has paid for the course, the student has the right to approach the DOE which will thereafter call on the guarantee and reimburse the students. This type of guarantee is provided on behalf of the training institutions.
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The law requires all Home Builders to enrol every new home with the National Home Builders Registration Council (NHBRC). Irrespective of selling price, all new homes must be enrolled fifteen (15) days before construction commences. Failure to enrol may result in the Home Builder having to supply the NHBRC with a Bank or Insurance Late Enrolment Guarantee.
Benefits of an insurance guarantee
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Low collateral requirements
Fast turnaround times
Softer security requirements
Cost effective
Specific industry experience
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Lodging an Insurance Guarantee at the start of a project enables a contractor to immediately access cash from the project, thus enhancing its cashflow.
Collateral Levels are competitive when compared to banks in SA.
By keeping the Guarantee facility separate from its banking facility, a client can free up funding structures with its banks.
Some guarantees that are renewed annually create the ease of allowing companies to focus on projects with the knowledge that risk is taken care of.
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The company automatically saves capital that can be used for the completion of the project or pursue other projects.
Entities can avoid borrowing funds from financial institutions to strengthen their cash flow to be able to complete projects.
Entities can have their premium rate reviewed and possibly decreased for other future projects should payments be made on time and adherence to other underwriting factors.
An Insurance Company can accommodate the client’s Guarantee Wording requirements within reason.
