CAUTION INSURANCE

We ensure the guarantees you need to respond to your legal obligations. In case of non-compliance with these obligations, ALBOR will indemnify the Insured.

What is Caution Insurance?

With the S&C Policy you can issue the guarantees you need to be responsible for your legal or contractual obligations to third parties. In the event of a breach of these obligations, ALBOR shall indemnify the Insured to the limit established in such guarantees.

Article 68 (Law 50/1980, of October 8, on Insurance Contract):

“By security insurance, the insurer undertakes, in case of non-compliance by the policyholder of his legal or contractual obligations, to compensate the insured person for compensation or penalty for the property damage suffered, within the limits established in the Act or contract. Any payment made by the insurer must be reimbursed by the policyholder.”

What are the benefits of Caution Insurance?

Caution Insurance is the most effective alternative to ensure compliance with the legal or contractual obligations required by third parties. This insurance has the following advantages:

There is no cost to study, open, maintain and cancel lines.
Reduces credit risk by not computing in CIRBE.
Guaranteed quantities are not reflected in the balance sheet liability.
You will have your fundsavailable, as no amounts are pledged to your accounts.

Interventions in The Security Insurance:

Types of Warranties:

At ALBOR we offer the following types of guarantees to be responsible for your legal or contractual obligations to third parties:

Guarantees to the Administration

Public Bodies shall request the submission of such guarantees to the Companies interested in the award of contracts with the Administration. By meansof theprovision of Tendering and in accordance with the bases prepared for this purpose called “specifications”, a Public Agency carries out a selection process of the Contractor suitable for the award of a contract of work, service or supply.

We have the following types of guarantees before Management:

Bidding Guarantee:

The Administration will require the submission of this type of guarantee, together with the proposal, in order that the Contractors who enter a public competition do not withdraw or modify their offer once the contract has been awarded. The amount of this may not exceed 3% of the basic tender budget of the contract, excluding Value Added Tax.

Execution Guarantee:

With this guarantee the Administration will be covered against the Contractor in the event of a breach of the legal or contractual obligations established in the contract. Bidders who have been awarded the contract must have a definitive guarantee, around 5% of the final price offered, excluding Value Added Tax.

Guarantee of Advances and Collection of Materials:

Warranty requested by the Administration in those contracts in which the Contractor receives an advance payment on account of the total price of the contract. The purpose of this will be to ensure that the amount received by the Contractor will be used in the execution of the work.

Within this modality we have the guarantee of collection of materials, in which the advance will go to the acquisition of the materials or machinery necessary for the execution of the project.

Customs Guarantees

The purpose of the security of a security of customs guarantees is toensure the collection, to the Customs Authorities, of the tax debt generated as a result of the import, export and transit operations of legitimate trade goods.

They are requested by the Customs Authority with customs warehouses, temporary imports, release of goods, customs transit, processing traffic, etc.

Renewable Energies

Aimed at companies interested in the construction and commissioning of renewable energy installations (photovoltaics, wind or biomass).

These guarantees are requested by the Administration from companies interested in obtaining an administrative licence for point connection to the electricity transmission and distributionnetwork.

Judicial Warranties

Requested by the Jurisdictional Agencies in preventing possible economic responsibilities arising from judicial processes. This security of bond i rádirigido to companies or individuals, to which they require the deposit of a security in a court, in compliance with their procedural obligations.

Municipal Licenses

Guarantee addressed to companies interested in the granting of a municipal license or authorization to carry out theiractivity, building licenses to respond to the correct conservation and maintenance of public space, waste, etc.