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Bank Guarantee to Fuel Guarantee | CivilSure

What is a Fuel Guarantee?

A Fuel Guarantee is security provided against default payment made by the Retailer for fuel delivered by a Fuel Company.

What can the Guarantee cover? Fuel purchases, rent, royalties, lubricants etc.

Guarantee principle The Fuel Guarantee cover can be seen as an insurance solution, rather than a short term insurance policy, as the Guarantor (insurance company) can recover claims paid when Fuel Station owners default. Because the Guarantor is not tying up collateral, cash or assets in providing payment guarantees to the Fuel Company, it benefits the Fuel Station.

Bank Guarantee vs Fuel Guarantee

A Bank Guarantee is a binding agreement of assets as collateral security and traditionally banks take out a bond over the assets

provided.  On the contrary, Fuel Guarantees don’t require assets for collateral security. But Fuel Station owners have the choice of providing cash collateral for a reduced premium. A Fuel Guarantee is the only approved alternative to a Bank Guarantee.

Why is a Fuel Guarantee the better choice?

Simply put, you would be able to invest capital in your business with the peace of mind of being covered, instead of it being tied up at the bank.

It is important to note that you can either get a Fuel Guarantee to replace a Bank Guarantee or to increase existing Guarantees.

A few of the many tailored benefits at no additional cost to you:

  1. Restoration costs of any damage caused by emergency services attending to the premises.
  2. Change of temperature resulting in accidental damage to stock from the total or partial disablement of the refrigeration plant.
  3. Fuel leakage/escape from underground storage tanks and pumps, including the loss of such fuel from any fire peril provided up to an amount.
  4. Fuel Contamination (caused by the ingress of water into tanks).
  5. Subsidence and Landslip (basic cover).
  6. Monetary losses occurring as a result of fuel purchases made by customers with fraudulent or stolen credit cards.
  7. Post-trauma counselling (max. R500 per person and R10 000 limit per event).
  8. Car hire costs (cover can be included at an additional premium).
  9. Fatal injury to Employees including fatal injury due to a fire.
For a Fuel Guarantee quote click here.


Help! What construction insurance do I need?

Understandably this can be a challenge as there is a myriad of cover available in the construction insurance landscape.

Let’s quickly unpack 5 Construction Insurance options for you.

Four types of Contract Guarantees and What They Insure

Contract Guarantees in the construction, engineering, manufacturing and mining service industries are almost mandatory. Our range of Construction Guarantees are as varied as your requirements. Here’s a short list of the four types of Contract Guarantees and what they insure.

What’s the difference between a Performance Bond and a Performance Guarantee?

The term Performance Bond is often misleading, which can leave contractors confused about the difference between a performance bond and a performance guarantee. Most construction Performance Bonds are actually Guarantees. Bonds and Guarantees are related but are different. The right to claim under a Guarantee is linked to non-performance of the underlying contract. Under a Bond, the bank usually pays on demand regardless of the underlying contract.

How do you get a Performance Guarantee?

When applying to get a Performance Guarantee, you’ll have to answer basic questions about your professional work experience and your company’s financial history. If your business has more than one owner, the financial credentials of all owners must be submitted.

Get your Letter of Intent almost instantly

The term ‘Letter of Intent’ (LOI) is typically used to describe a letter from an Employer to a Contractor (or from a main Contractor to a Subcontractor) indicating the Employer’s intention to enter into a formal written contract for Works described in the letter, and asking the Contractor to begin those works before the formal Contract is executed. While an Letter of Intent may come in many forms, it’s essentially a communication expressing an intention to enter into a Contract at a future date.

When is a Performance Guarantee called on?

Building Contractors often ask us the question: When is a Performance Guarantee called on? When your company starts bidding on projects for cities, provinces or municipalities, you’ll be expected to provide assurance that you can meet the obligations detailed in the Contract.

This assurance comes in the form of a Performance Guarantee. Basically, what happens is that a surety company (an insurer or bank), for a certain fee, steps in and guarantees your performance. Surety companies don’t work directly with Contractors. Instead, they partner with brokerages like us.

What is a Performance Guarantee?

A Performance Guarantee is a contractor’s promise to complete the construction project within the deadlines, while meeting all contractual conditions.

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