Approved Surety gives insurance brokers access to International Bonding markets that allow their contractor clients to apply for bonds abroad.
Approved Surety provides Companies, Brokers and Clients with a wide range of bonding products that put them in a stronger financial position when dealing with suppliers. Approved Surety gives its Broker partners and their respective clients, access to international bonding markets and has an extensive network of business partners that have access to guarantee facilities in other markets.
Within this framework, Approved Surety offers a wide range of bonds, including bid bonds, performance bonds, advance payment bonds, maintenance bonds and customs bonds. Additionally, Approved Surety offers many finance-based International Bonding instruments to assist their business partners, brokers, and their broker’s respective clients. Such include:
ACCOUNT PERFORMANCE SECURITY GUARANTEE
Approved Surety understands financial institutions demand collateral when issuing guarantees on your client’s behalf. Many banks will forego collateral when presented with an Account Performance Security Guarantee because it provides them with 100 per cent protection.
With an Account Performance Security Guarantee in place, your client’s financial institution is assured it will receive full payment for any calls against their guarantees.
FOREIGN EXCHANGE FACILITY GURANTEE
Approved Surety’s Foreign Exchange Facility Guarantee encourages your client’s foreign exchange provider to forego the need for collateral when foreign exchange contracts are purchased to protect against currency fluctuations. With a foreign exchange contract, your client’s provider agrees to lock in the exchange rate on the contract.
ACCOUNTS RECEIVABLE INSURANCE
Approved Surety knows that your client’s accounts receivable must be insured. AR insurance allows your company to reduce bad debt significantly, reduce bad debt reserves, and free up capital for investment.
AR Insurance is detrimental to expanding your client’s market to buyers and developing markets that would otherwise be considered too risky.
SINGLE BUYER INSURANCE
Single-Buyer Insurance is a trade credit insurance policy, which reduces how much risk your client’s business faces when allowing foreign customers to buy on open account. Approved Surety’s Single-Buyer Insurance can protect your client’s business(es) against losses if one of their foreign buyers cannot pay for goods or services that were exported.
CONTRACT FRUSTRATION INSURANCE
Contract Frustration insurance from Approved Surety protects against breach of contract by agents of a foreign government or breach of contract by a private entity that is caused by an act of a foreign government. In the event of an alleged breach or repudiation, the investor must be able to invoke a dispute resolution mechanism (e.g., an arbitration) in the underlying contract and completely has again obtain an award for damages.
PERFORMANCE SECURITY INSURANCE
Approved surety can provide its Broker partners program that guarantees their business partners perform to the stipulations of their contract. Approved Surety Co.’s Performance Security Insurance can cover up to 95 per cent of losses if your client’s foreign customer demands payment on a bank-issued guarantee without a valid reason.
POLITICAL RISK INSURANCE
Political Risk Insurance is a specialized insurance for companies doing business or conducting operations in foreign countries. Political Risk Insurance provided by Approved Surety addresses the business exposures to loss faced by these companies as a result of either foreign or domestic governmental action.
Types of exposures that can be covered under political risk policies include confiscation, expropriation, deprivation, nationalization, political violence, currency inconvertibility, contract frustration, and export credit.