facebook logo

Surety Bonds

Surety Bonds 

 

 

 

 

A Surety bond (guarantee) is defined as a three-party agreement that legally binds together you (who need the bond), beneficiary (who requires the bond) and insurance company (that sells the bond). The bond guarantees that beneficiary will receive a certain amount by insurance company if you fail to meet contractual obligations in the timely manner. Therefore, surety bond protects the beneficiary against losses resulting from your failure to meet obligations. 

 

 

 

TBC Insurance issues guarantees both in written and in electronic form (e-tenders). 

Who the surety bond is meant for

  • Surety Bonds may be issued for legal entities providing service or product supply within Georgia. 

 

 

 

 

Required procedures

 

  • Submit required documentation
  • Asses financial information
  • Evaluate collateral
  • Make decision about Bond issuance
  • Approved bonds documentation process

Surety Bond tenure

 

 

  • Based on tender or contractual terms

How to annual Surety Bond 

 

  • Issued Surety Bond may be annulled solely upon receipt of a written request from the beneficiary or is canceled upon expiration.

Types of Surety Bonds 

 

  • Tender (Bid) Bonds - participation in a tender/auction
  • Performance Bonds - Fulfillment of contractual obligations 
  • Advance payment Bonds - To guarantee purpose of funds received in advance 
  • Retention Bonds - Supplied product/service quality assurance 
  • Customs Bonds - Customs duties and fees payment assurance 
  • Payment guarantee - Contractual payment commitment assurance