Bonded and insured, meaning
Surely you have heard many times about the importance of being insured, maybe you didn't pay attention to it, or you simply pay without being sure of what it entails. The history of the insurance industry dates to almost 4000 years ago, with the Code of Hammurabi of Babylon, in this code the merchants had to be financially responsible if their workers had an accident at work. From then until now the objective has been the same: to prevent risks. The word insure means protection, it is synonymous with free from harm, it seeks to help in case of consequences in unfortunate events that could harm you or your family.
How does insurance work? Insurance companies draw up a contract called a policy, where they commit themselves to indemnify the damage in case of an unfortunate event (which is previously insured). The buyer pays according to the type of insurance. For example, Air Seguros & Fianzas has worked for more than 15 years for the adequate protection of its clients, major medical insurance, car insurance, life insurance, cargo insurance, business insurance these are some of the services they offer. This company is responsible for providing confidence to its customers with quality service and personal accompaniment.
How important is to be insured? A loss can occur at any time, it is an unfortunate situation that can happen at any second. Being insured does not prevent the act, but it does prevent the expense of the materialized loss. Being properly prepared for the situation helps us to have a reliable financial backing.
A surety institution undertakes to guarantee the fulfillment of certain obligations acquired by a person to another person, private or public institution. The bond is used in economic transactions as a document that commits both parties in a payment contract, reducing the possibility of an economic loss, in case the debtor does not comply with the agreed upon in a contract, the surety company undertakes to guarantee the fulfillment of these obligations.
What is the difference between insurance and bonds? In the case of insurance, this is a bilateral contract (insurer-insured) and in the case of a bond, there are three parts in the contract (surety company, surety, and beneficiary). We mentioned above some types of insurance, in the case of a bond contract exemplified is when renting a house and the owner or landlord asks the tenant for this type of contract to ensure the payment. Both insure and bond prevent losses; however, they work for different cases.
