You will be familiar with the benefits of Surety Bonds over Bank Guarantees that led to their introduction by GOI in public procurement. Now the question arises “How to buy surety bond insurance for your company?”
In order to solve this problem in a structured way Surety Seven experts have prepared this step by step guide to buy Performance Bond Construction. It would clarify your doubts as to what needs to be considered while making the purchase? What is required of you? & What is the process to be followed?
Let us jump right into the steps –
Step 1: Look for a Surety Bond Partner
Having a knowledgeable, reputable partner that guides you through the entire process is the first page out of any procurement guide. Since your own knowledge is limited & chances of making a mistake are high.
When searching for such partner, it’s important to make sure that the provider has access to a variety of different companies. This will ensure that you can purchase coverage at competitive rates no matter what type of business you have.
Introducing Surety Seven, an innovator in the realm of Indian Surety-Tech. Our technology seamlessly supports your exploration for the most fitting surety companion. Our ensemble includes adept minds in finance and insurance, garnering a wealth of combined experience spanning more than twenty years. Our extensive exploration of Surety Bonds underscores our profound grasp of this domain..
Step 2 : Determine the Surety Bond Insurance you need to buy
In our Free consultation session, Surety Seven experts will listen to your requirements, including the type of project, the government agency to which you are applying etc.
On basis of your input we help determine what type of bond is appropriate for your needs. There are several different types of surety bonds that may be required for your project.
- Performance bonds
- Payment bonds
- Bid bonds
- Maintenance Bond
It is important to determine the type of bond you need based on the specific requirements of your project.
Step 3 : Arranging Your company’s Surety Bond proposal
Next, Surety Seven asks for relevant documents and does a financial & technical analysis on it. Basis this we come up with the best way in which to present your Surety Bond proposal to the Insurance or Reinsurance company.
You submit an application for the surety bond to the insurance company called proposal. The application process typically involves providing financial and operational information about your business, as well as details about the project.
The insurance company will review this information to assess the risk of issuing a surety bond for your project. If the surety company approves your application, they will be ready to issue a surety bond for the project.
Deep study of your company commercials & history by Surety Seven experts ensures eligibility & procurement of maximum protection at best market rates.
Step 4 : Surety Bond quotes generated from various providers
Making use of the proposal arranged in previous step, Surety Seven presents your case to various insurers like Bajaj Allianz, TATA AIG , Liberty General etc. & Re-insurers like Munich Re, Swiss Re, Hannover Rück S.E., SCOR S.E. etc.
A strong proposal & its proper presentation in the market ensures participation by various insurers & re-insurers.
We haggle at this stage to get the best surety bond offers for you. Afterwards we summarize all offers & provide to you as a comprehensive comparative analysis , for you to choose what is best for you.
Step 5: Pay premium To buy Surety Bond Insurance
After you have confirmed your order based on the quotes provided in the previous step, you will need to pay the premium to the insurance company directly in order to avail the surety coverage. Surety Seven comes to your aid by arranging payment options that are further friendly to your pocket.
Step 6: Surety Bond issued
Finally, Surety Bond with all its advantages gets issued & you are good to go.
The Surety bond customized to your needs allows you to bid, win & execute tenders floated by the government for your construction company.
This entire process takes only 7-10 working days. Our team of experts makes sure the TAT is minimal.
For a repeat case the duration is only 2-5 days.
Step 7 : Renewal Of Surety Bonds
If you fail to renew your surety bond before it expires, the bond will no longer be in effect and you may be in violation of terms of your contract. This could result in fines or worse, forfeiture of the contract.
Surety Seven notifies you in case your Surety Bond is about to expire. It begins the renewal process well in advance to allow sufficient time for the renewal process to be completed.