An insurance guarantee provides financial protection to tenderers by guaranteeing the payment of a certain amount in the event that the successful tenderer fails to fulfill its obligations. This means that in case of withdrawal of the tender offer, failure to fulfill the terms of the contract or other failures on the part of the participant, the insurance company provides financial compensation to the beneficiary. Such a guarantee helps to reduce risks and ensure compliance with the terms of the tender agreement.
The insurance guarantee to the tender proposal provides:
- financial protection: guarantees financial protection of the tenderers in case of non-fulfillment or improper fulfillment of the conditions specified in the tender documents;
- simplification of the process: allows tenderers to avoid the need to block their financial resources or post a cash collateral, which provides greater financial flexibility;
- risk protection: guarantees compensation for possible financial losses that may arise as a result of participation in the tender, which helps participants reduce risks and increase confidence in their own actions;
- сompliance with the requirements: the insurance guarantee meets the requirements of the law and tender documents, ensuring its legality and acceptability to the tender organizers.
