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Amounts, deadlines, and commercial conditions guaranteed: contractually assured security.

Having insurance is just as important as having a contract: it offers guarantees that will be fulfilled depending on the amount, deadline, and conditions negotiated.

Choosing the right partner for a Performance Bond is a key factor for success.

GALCORR is the market’s obvious choice:  with more than R$4 billion in policies issued, it is one of the main Brazilian brokers for this type of insurance.

 

Why does GALCORR have extensive know-how for contractual guarantees?

 

Our technical and commercial team specializes in guarantees and performance bonds, and we are committed to finding solutions for our clients. Our strong relationship with the entire insurance and reinsurance market leads to advantageous negotiations and extremely agile services.

 

GALCORR manages guarantee solutions for clients in several economic sectors such as food, pharmaceutical, financial, hygiene and cleaning, petrochemical, retail, infrastructure, energy, and civil construction.

What is a performance bond?

This type of insurance guarantees fulfillment of obligations stipulated in public and private contracts, whether building, manufacturing, supplying, or providing services. This insurance is provided by the Policyholder in favor of the Insured.

 

Its purpose is to ensure that the Policyholder (Principal) will fulfill legally or contractually assumed obligations to the Insured party (Contractor).

 

Performance Bonds have huge advantages over traditional bank letters of guarantee. Performance Bonds offer lower costs, they are issued quickly and, especially, they do not affect the bank credit facility of the Policyholder.

 

This means that your company's working capital and funds for new investments are not compromised.

Situations requiring this type of insurance

  • Competitions and bidding procedures;

  • Construction works and projects;

  • Supplying goods;

  • Providing Services;

  • Customs Guarantee;

  • JudicialGuarantee;

  • Administrative Guarantee;

  • Labour Guarantee.

  • Lower costs than other guarantees;

  • Does not affect the bank credit facility of the Policyholder (thei company's working capital and funds for new investments are not affected);

  • Efficacy settling any disagreements between both parties: principal, and contractor.

Advantages of Performance Bonds

Main types of Insurance

Bidder's Guarantee, Guarantee for Construction, Supplying or Providing Services, Advance Payment, Withholding Payment and Corrective Maintenance, Court Deposits, Customs and Property Guarantees.

GALCORR’s special edges for performance bond

  • Legal advice for defence and acceptance of Court Deposit Insurance;

  • Specialized services from a highly committed proactive technical team;

  • Technical and operational excellence from our team of engineers and lawyers;

  • Excellence in negotiating the best conditions for clients;

  • Know-how to create and develop intelligent insurance solutions for different sectors;

  • Excellent relationship with Insurance and Reinsurance Market;

  • Advice for Road Shows and developing reports for local and international reinsurers/insurers;

  • Detailed knowledge of each operation, to drive sales;

  • Negotiating contractual clauses for the Insurance and Reinsurance Market;

  • Technical support for claims to protect our client's rights and interests.

Regulatory issues

Superintendence of Private Insurance (SUSEP) Circular 477 of September 30, 2013

Sets forth minimum details required in policy, general and special conditions for guaranteed insurance contracts, and other provisions.

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Law No. 8,666/93 and Law No. 8,883/94

Regulations for government bidding procedures and contracts for works and services.

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Legal provision for Court Deposit Insurance

Ministerial Order of the Attorney General for the National Treasury (PGFN) No. 164 of February 27, 2014.
Articles 7 and 9 of the Tax Enforcement Law (Law 6,830/80);
Law 6,830/80 (modified by Law 13,043/14).
Ministerial Order of the Attorney General for Federal Agencies Office (PGF) 440/2016.

Articles 835, 2, New Brazilian Code of Civil Procedure (NCPC) and 848, sole paragraph, NCPC (law 13,105/15).

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