Purpose

CESCE stands surety to the policyholder or contractor before the central, regional and local governments, etc., in respect of the economic liabilities that, as a consequence of his failure to perform the guaranteed obligations, he may be required to honour on account of contractual or legal provisions binding the parties.




Modalities

Our main surety bond modalities are:

  • Bid and performance bonds (civil works, supplies or provision of services)
  • Advance payment and public procurement bonds
  • Customs bonds
  • Bonds for contracted media advertising space
  • Guarantees for agricultural bodies – Spanish Agrarian Guarantee Fund (Fondo Español de Garantía Agraria)



Main Benefits

  • Sureties facilitate trade
  • Sureties free up financial resources
  • Swift and nimble processing of new lines and issuance of guarantees



Online Services : Cesnet

For easier policy management, CESCE offers you Cesnet, a technological platform accessed via our website with the user codes you are provided.

Through Cesnet you will be able to access our surety services and the entire information available on your surety policy, and to apply for guarantees, in real time.



Insurance Details

  1. The company (the policyholder or contractor) that needs to guarantee compliance with its obligations before a third party contracts surety insurance with CESCE (insurer).
  2. The company (policyholder) and the insured enter a contract.
  3. The policyholder approaches CESCE (the insurer) for a guarantee.
  4. The Insurer issues a guarantee to the Insured (company to which the policyholder guarantees performance of its obligations).



Contracting and Operation

CONTRACTING

1. The company needing to present a guarantee applies for the policy.

The company sends an application for endorsement to caucion@cesce.es or to the nearest CESCE office indicating:

  • the amount required and the types of guarantee needed:
    • accompanying a complete audit of the latest two fiscal years, as well as the signed and sealed preliminary accounts of the year underway. If the accounts are not audited, the entire information deposited with the company registry and the corporate tax declarations, both for the same two periods, as well as the preliminary data of the year underway, must be provided;
  • General information (company name, tax code, person to contact, etc.),
  • Any other documentation to provide the Insurer,
  • Consolidated financial statements and preliminary data,
  • Order book or works portfolio.

For coverage, fill in the application form attached and e-mail it to caución@cesce.

2. Analysis of the application

The Insurer examines the documents provided and communicates the company the conditions of the insurance contract (maximum aggregate limit, premium rate, minimum premium and modalities).

3. Issue of the policy and formalisation

If the company agrees with the conditions, the policy is issued and sent to the contractor for signature and return of the particular and general conditions.

OPERATION

4. Issuance of the Guarantees

To start issuing guarantees, the following conditions must be met:

  • The applicant has signed the policy and supplied the data needed for issuance,
  • Direct debit,
  • Capacity available (balance),
  • The type of surety applied for is referred in the particular conditions of the policy.

5. Cancellation of Guarantees

Requirements:

The insurer is in possession of

  • the original of the guarantee issued;
  • properly accredited proof that the surety has been lodged with the Caja General de Depósitos;
  • the original letter of the beneficiary in case the original documents have been lost.

Consequences:

  • Readjustment return premium, if appropriate;
  • Readjustment of surety capacity.

6. Premium receipts

Each month the Insurer forwards the relation of guarantees issued the month before indicating the corresponding premiums.




Global Surety