Surety Insurance

What is Surety Insurance?

It is an insurance contract by which the Insurer undertakes to indemnify the insured by way of compensation or penalty of the damages suffered, within the limits established in said contract, in the occurrence of the circumstances agreed therein in relation to the breach By the insurance contractor of his legal or contractual obligations (damages).

  • Regulated in the Law on the Insurance Contract (LCS), the Law on Insurance and Bonding Institutions, the Single Circular on Insurance and Bonding.
  • It does not include contractual obligations of a financial nature; Being understood by those operations that are related to cover the payment by default of the issuers of securities titles of credit or documents that are object of public offer or of intermediation of market of values.


  • The insurance is a main contract, does not depend on another contract for its existence.
  • The legal or contractual obligations are reflected in the insurance certificate.
  • Guarantees the payment of damages or the penalty set in the policy.
  • The link is the individual bond insurance certificate.
  • The insurer can not oppose the exceptions of the main obligation, however it can oppose those that are its own.
  • Payment at 30 days, as long as the insured presents the documents provided in the certificate.
  • The insurer is subrogated in all the rights of the insured.
  • The bond is established by the policy, signed by the contractor, which empowers the insurer to issue the bond insurance certificate.
  • The policy also confirms the right of reimbursement to the insurer.
  • The insurer has no obligation to notify the contractor of the receipt of the claim.
  • The insurer is free to decide in its opinions.
  • Failure to pay (total or partial) does not suspend or terminate the bond insurance contract.

Requirements that the policy must have (Insurer – Contractor)

The insurance company shall be obliged to deliver to the insurance contractor a policy stating the rights and obligations of the parties and shall contain in accordance with art. 20 LCS:

  • Names, addresses of the contractors and signature of the insurance company.
  • Designation of the thing or insured person.
  • Nature of the risks guaranteed.
  • The time from which the risk and duration of this guarantee is guaranteed.
  • Amount of guarantee.
  • Insurance premium.
  • Clauses in accordance with legal provisions, as well as those legally agreed upon by contractors.

The policy will be issued in duplicate by delivering a copy to the contractor and another to the Insurer, and must contain the signature of the insurance contractor and a clause stating that the Insurer will assume the risk before the insured by issuing the corresponding surety certificate , To which the contractor recognizes the same force and validity as the policy.

Requirements that the Certificate of Deposit must have (Contractor – Insured)

The bond certificate must contain the following:

  1. The name and address of the insurance company, the insurance contractor and the insured.
  2. The legal or contractual obligations of the insured risk insurance.
  3. The sum insured or, where applicable, the agreed amount of compensation.
  4. The vouchers that the insured must give to the insurer to prove to him that the agreed circumstances occurred to make the amount of the indemnity due. In the case of insurance in favor of the Federal Government of the Federal District, of the States and of the Municipalities, the provisions of the applicable legal, regulatory and administrative provisions must be observed.
  5. The starting time of the insurance and its duration.
  6. The transcription of Articles 154, 155 and 156 of the Law on Insurance and Bonding Institutions.
  7. The other clauses that must govern the contract in accordance with the applicable legal provisions.
  8. The number and date of the policy under which the certificate is issued.
  9. The signature of the insurance company.


Products to Guarantee

Administrative branch: work and supply:

  • Sustaining offers, promises or commitments in tenders and tenders.
  • Good use, application and / or amortization of advances received in respect of contracts.
  • Compliance with contracts.
  • Repair of defects or hidden defects in the executed works and / or services provided.

(*) Intermediation card C as surety bond agent, in the next step before the National Insurance and Bonding Commission.