THE ESSENTIALS
Before you start
- The guaranteed amount is different from the premium.
- Compare the same obligation and period.
- Request all costs and possible counter-guarantees in writing.
Two figures with different purposes
A legal example illustrates the distinction: the state-backed surety model published in Portugal's Joint Order 224/2004 defines the guaranteed amount as a limit of responsibility towards the beneficiary and treats the premium separately in the particular terms. This is a specific regime, rather than a current market tariff.
Look for those two lines in your own proposal: the amount guaranteed and the amount payable for insurance.
An illustration, not a commercial rate
In this entirely fictional exercise, Nuno compares a required EUR 50,000 guarantee with a proposal showing a EUR 600 total cost for the stated period. Clara separates the lines: EUR 50,000 describes the guarantee; EUR 600 is that example’s expense. This is neither a quotation nor an acceptance prediction.
If another proposal shows EUR 450, check that it responds to the same obligation, period and required wording. The lower figure alone does not settle the comparison.
Prepare a useful quotation request
Gather the contract or documents requiring the bond, beneficiary details, amount, intended duration and requested guarantee wording. Highlight extensions rather than sending conflicting versions.
Ask for premiums, taxes, expenses and renewal or extension conditions to be itemised. Also ask about counter-guarantees or reimbursement obligations for consideration; price does not answer those questions.
Support the business decision
Use four comparison fields: obligation, amount, period and total cost. Add a fifth for unresolved conditions. This is an organisational suggestion and does not replace legal review of commitments.
You can request a quote from RMACHADO with the documents describing the obligation. Issue depends on insurer assessment and acceptance and on the wording meeting the beneficiary's requirements.
KEEP THESE QUESTIONS
Your checklist for the next conversation
- Separate the guaranteed amount from total cost.
- Supply the contract, required wording and intended period.
- Compare the same obligation and duration.
- Clarify expenses, extensions and counter-guarantees.
FROM THE ARTICLE TO YOUR SITUATION
Let us discuss your situation
Tell us what you want to protect. We review your request and help compare relevant terms. Requesting a quotation does not activate insurance.
Sources and transparency
Content updated on .
Consultation dates are stated in individual references when available.
Numerical examples are fictional and explain concepts. Editorial interpretations are identified in the text.
Information from RMACHADO GROUP. This is not an insurance offer or individual advice. Covers, acceptance, exclusions, sums insured and costs depend on the policy. The intermediary does not underwrite the risks.