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Madrid: 91 788 6150 - Barcelona: 93 445 3430

Surety

Protect your company with Markel Surety, the best guarantee to insure your contract

Surety Insurance

The best guarantee to ensure compliance with your contract.

Companies and individuals do business in highly complex environments, that is, in settings that are constantly changing, and therefore very difficult to predict. This creates a high level of risk that a contract will not be fulfilled.

To offset this risk, Markel offers surety insurance. You may well ask, what is surety insurance? And how will purchasing it help my business? Well, surety insurance is a bond of compliance, normally used to supplement a contract in which a commitment is made. It is through this bond that the injured party can be compensated if a contract is breached.

But what does surety insurance involve? Roughly speaking, there are three parties involved: first is the policyholder, which purchases the policy to guarantee its obligation; second is the beneficiary, which requires the policyholder to provide a guarantee in the event that the latter fails to fulfil its obligations; and lastly is the insurer, which is the insurance company that issues the policy.

As a result, Markel thus agrees to pay the beneficiary a premium or penalty for financial damages sustained if the policyholder fails to fulfil its legal or contractual obligations.

Types Surety Insurance:

At Markel we offer four different types of surety insurance that adapt to your business needs:

Technical surety (tender, performance, advances/collections for public contracts)

Description:

We guarantee that our clients will comply with the contractual obligations entered into with various public agencies through construction, service, supply, consulting or assistance contracts.

Who it’s for:

Any company that bids or contracts with the government is required by the Law on Public Sector Contracts to provide a guarantee that it will comply with its obligations.

Documentary and baseline requirements to assess the transaction:

  • Audited financial accounts for past two periods (consolidated accounts and org chart in the case of groups of companies). If not required to conduct audits, the accounts filed with the Business Registry must be provided.
  • Provisional results for the period in progress (consolidated accounts in the case of groups of companies).
  • Portfolio of existing contracts.
  • Baseline requirements:
    • Company operating at least 3 years
    • Net equity of €500,000
    • Turnover of €1,000,000
    • No losses or non-payments in last two years
Customs bonds (customs warehouse, temporary imports, release of goods for inward processing, ATA carnets)

Customs authorities require the principal agent to post bonds to guarantee any import and tax debts payable to Spanish customs resulting from its transport and importing activity, whether for itself or for third parties.

Who it’s for:

Customs agents, forwarding agents and direct importers.

Documentary and baseline requirements to assess the transaction:

  • Audited financial accounts for past two periods (consolidated accounts and org chart in the case of groups of companies). If not required to conduct audits, the accounts filed with the Business Registry must be provided.
  • Provisional results for the period in progress (consolidated accounts in the case of groups of companies).
  • Most recent 347 form
  • Baseline requirements:
    • Company operating at least 3 years
    • Net equity of €500,000
    • Turnover of €1,000,000
    • No losses or non-payments in last two years
Network access point guarantee for renewable energy facilities and public auctions under the specific payment scheme

In order to obtain a connection point to the electrical transport or distribution network at renewable energy facilities, a bond must be presented to process the access.

Who it’s for:

Any company requesting an administrative permit to build and operate a renewable energy facility.

Documentary and baseline requirements to assess the transaction:

  • Audited financial accounts for past two periods (consolidated accounts and org chart in the case of groups of companies). If not required to conduct audits, the accounts filed with the Business Registry must be provided.
  • Provisional results for the period in progress (consolidated accounts in the case of groups of companies).
  • Activity dossier
  • Baseline requirements:
    • Company operating at least 3 years
    • Net equity of €1,000,000
    • Turnover of €2,000,000
    • No losses or non-payments in last two years
MEFF guarantees for parties in the electricity production market

These guarantees stem from the liquidation carried out by the system operator for the differences between the purchases planned and those actually made in the electricity production market, as well as to cover other expenses, fees, penalties or financial rights directly associated with the aforementioned non-compliance.

Who it’s for:

Authorised electricity distributors and resellers.

Documentary and baseline requirements to assess the transaction:

  • Audited financial accounts for past two periods (consolidated accounts and org chart in the case of groups of companies). If not required to conduct audits, the accounts filed with the Business Registry must be provided.
  • Provisional results for the period in progress (consolidated accounts in the case of groups of companies).
  • Activity dossier
  • Baseline requirements:
    • Company operating at least 3 years
    • Net equity of €2,000,000
    • Turnover of €4,000,000
    • No losses or non-payments in last two years

Our surety insurance gives you more confidence when entering into a contract by backing all of the activities you undertake, offering the best guarantees so you can mitigate the risk of non-compliance.

So contact us now. Remember that we analyse and issue the surety framework policy at no cost, and offer fast service to study, respond to and issue sureties. Email us at caucion@markelintl.es

Surety Team

Francisco Juárez

Surety Manager

+34 91 788 6152

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