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