The beneficiary of a policy Deposit, gives people peace of mind that if the provider of a service breaches the obligations assumed in a contract, the bonding company will face the obligation assumed as guarantor of the supplier. But, what happens when a breach occurs? What are the steps to follow to issue the corresponding claim?
Faced with a breach by the provider that provides a service, the most important thing is to know who we should turn to and what documents must be presented in order to issue the claim, then the beneficiary of the bond policy must validate to the surety the existence and the enforceability of the secured obligation.
Another factor that is essential to take into account is the time you have to make it enforceable, that period previously stipulated in the policy and indicates the beneficiary from becomes due when a policy of Deposit to be in default.
There are many cases in which the beneficiary does not know when their right to claim arises, which sometimes leads to the claim not proceeding. This frequently occurs with the Compliance Bonds, which are granted in the works contracts in order to guarantee the fulfillment of the obligations assumed by the contractor, such compliance culminates with the execution and delivery of the work within the agreed term. In case this does not happen as agreed, the beneficiary will have 180 calendar days from when the bond is delayed in the execution of his work, to present the claim of the policy of said bond.
A policy of Deposit, the beneficiary provides legal certainty necessary for conducting business, making it less serious breach, if it occurs.
Do you need to ensure compliance with an obligation or contract? Contract a bond with us!