Main specific intervention areas for guarantees

FGIS mainly deals with providing the most suitable contractual conditions in the stipulation of insurance guarantees for various sectors of the economy and public administration, ranging from industry to transport, from healthcare to services, from culture to tourism.

Typical sectors of “regulated” intervention are linked to legislation on public procurements (tenders, provisional and definitive bonds), to the bonds required for Urbanization Charges, the securities required for the VAT refunds, to the area of regional, national and European  contributions, registration in special registers (carriers, disposal of hazardous and non-hazardous waste), permutations and advances on paper, biogas / photovoltaic plants and technological risks (ten-year posthumous and CAR / EAR policies) and sureties to guarantee the payment of lease installments.

We are in a position to broker with insurance companies, regularly accredited, in favor of institutional beneficiaries that make available facilitated financial resources.

Quarterly, group, tax account refunds: obtaining VAT refunds through an insurance guarantee is the most economically advantageous way for fiscal creditors.

Guarantee in support of payment per division into installments with the Inland Revenue / Revenue Recovery Entities: it is a very common practice that is adopted when a debtor has to pay and to do so resorts to the installments. To guarantee the payment of installments, the Entity therefore requires a surety where the guarantor, or the insurance company, becomes liable towards the creditor by paying when the debtor is insolvent or late in payment.

There are also requests for reimbursement of the VAT credits, related to the issuing of surety in favor of the Revenue Agency.

FGIS has been operating for years in the field of sureties and is ready to assist you and to provide you with a service of excellence to help you.

This type of guarantee covers certain categories of activities, such as road haulage, armed surveillance and the waste cycle. FGIS, thanks to its multiple possibilities of collaboration with national and foreign insurance companies is in a position to find the guarantee in compliance with the regulations for registration or renewal in all the category registers for which this guarantee is mandatory.

There are specific guarantee models applied to these different categories

• Guaranty for security institutions and investigations agencies
• Guaranty for opening travel agencies
• Guaranty for car practice agencies
• Guaranty for the exercise of vehicles maintenance and workshop activities
• Guarantee of financial capacity for driving and nautical schools
• Guaranty of financial capacity for participation in tenders
• Guaranty of financial capacity for registration in the road hauliers register
• Guaranty for the operational management of quarries and mines
• Guaranty for registration in the environmental managers register
• Guaranty for cross-border transport of waste
• Guaranty for State Public Concessions

Vi sono specifici modelli di garanzia applicati a queste diverse categorie.

• Fideiussione per istituti di vigilanza e agenzie di investigazioni
• Fideiussione per apertura agenzia viaggi
• Fideiussione per agenzie di pratiche auto
• Fideiussione per l’esercizio dell’attività di revisione veicoli ed officine
• Garanzia della capacità finanziaria, attività di autoscuola o scuola nautica
• Fideiussione come garanzia della capacità finanziaria, partecipazione alle gare di appalto
• Fideiussione come garanzia della capacità finanziaria per l’iscrizione all’albo degli autotrasportatori
• Fideiussione per la gestione operativa delle discariche
• Fideiussione per iscrizione all’albo dei gestori ambientali
• Fideiussione per il trasporto transfrontaliero di rifiuti
• Fideiussione per Concessioni Pubbliche demaniali

These guarantees concern, for example, the guarantee for grants in Urbanization Charges, Construction Costs, Policies for advance payments or for Real Estate exchanges, 10-year Posthumous, insurance securities in public procurements.

In addition to obtaining the insurance guarantee for your Company or for a Customer, you can also contact us to obtain the decennial posthumous policy requested in accordance with some legislations.

There are specific guarantee models applied to these different categories of activities in the building sector:

• Guaranty on advance payments to the contractor
• Guarantees and sureties for real estate exchanges
• • Sureties for construction costs
• • Guarantees for the release of withholdings

The exchange of a present real estate (land) with a future asset, is the transfer of ownership of land in the face of a building unit to be built: it appears to be a fairly common practice in real estate practice; the landowner agrees to obtain, in exchange for the transfer of ownership of its area, instead of money, one or more units of future construction.

The contract with which two parties agree the transfer of ownership of land, in exchange for the transfer of a building unit to be built on the same land, can be qualified as a trade-in asset with a future good: ownership of the area is transferred immediately, while that of the houses or apartments only at the time when these will be built.

In the sureties for real estate exchanges, the landlord is guaranteed the property that the builder undertakes to build.

This situation can occur, for example, in cases where a construction company has to build buildings on a building plot and purchases the land from the rightful owner. However, if the manufacturer does not immediately have the amount available for payment of the land, the two subjects, i.e. buyer and seller can agree to stipulate a real estate exchange.

Guarantees and sureties for real estate exchanges: who can request them

In this specific case the land would be sold by the owner, in exchange for the real estate units that are to be built and which the builder / buyer will deliver at the end of construction.

The owner / seller of the land for a greater guarantee over the agreements made and therefore of the delivery of the real estate units, can ask for a surety.

The company that will issue the insurance guarantee will become the guarantor of any default by the manufacturer and will therefore be obliged to compensate in its place.

In this case, the stipulation of the surety involves three subjects:

• The guarantor, which is the company that guarantees the value of the exchange;
• The contractor, i.e. the construction company that requested the exchange;
• The beneficiary, who is guaranteed by the surety and who in this case is the owner of the land.

Thanks to a team of expert consultants we are able to guide you throughout the procedure and to get in touch with the best specialized insurance companies.

Right from the first contact, we listen to your needs and we work immediately to provide you with a first level service in the field of sureties.

Manufacturer’s guarantee: according to the provisions of regulations, the company or building company that sells real estate units “on paper”, and therefore before their construction, must release to the buyer a specific guaranty, equal to the amounts of money collected in advance, as a guarantee in case of default of the manufacturer.

In this case, the surety represents an instrument of fundamental protection for who has to buy a property. There have been many cases of consumers who in the past have paid large sums of money, as an advance, and then remain without a home, due to the default of the manufacturer.

For those who decide to buy a house “on paper” or houses under construction, the guarantee is therefore an essential guarantee.

Manufacturer’s guarantee for the advances paid.

The guarantee covers all the sums collected and still to be redeemed by constructor, i.e. the payments provided for in the preliminary purchase contract. Specifically, the surety must be issued before the signing of the preliminary contract of sale.

The surety guarantees that all the advances paid by the buyer to the seller will be fully refunded, in case of default of the building company.

There are laws designed to guarantee private individuals who often found themselves losing important sums of money due to the financial collapse of the construction company.

With the guarantee, three subjects come into play:

• The buyer who is the beneficiary;
• The manufacturer or construction company that is the contractor;
• The guarantor that is the insurance company.

Protection of buyers: buildings to be built

So if you want to buy a property “on paper”, or a house that still has to be built, you can minimize the risks through the surety.

In this way you can buy safely without risking of losing your investments.

Since it is not a matter of buying an already built house, the risks are obviously greater.

There are different types of guarantees applied to the field of tenders. Some examples:

• Guaranty for release of withholdings charged as collateral
• Guaranty for the payment of balance
• Provisional and definitive guarantees
• Provisional and final Guaranty – Tenders

First demand insurance guarantee

Some regulations, especially in public tenders, require the issuance of a first-demand guaranty (insurance surety). The client company must be entrusted before the issuance of the surety policy and in this regard, it is necessary to preliminarily acquire suitable documentation referring the contractor company and the tender.

The possibility of intervention on this type of risk sees the possibility of using different partners based on given times, the guaranteed amount and the percentage of offered price discount made by the bidding company.

The competitive advantage of FGIS in this sector lies in the possibility of multiple assignments that avoids the exhaust of emission ceilings for the tender participating companies,

FGIS is an insurance broker that is particularly well equipped and specialized in finding the guarantees necessary for the participation of tenders.

Our structure is in constant contact with numerous national and international insurance companies, both in establishment and in freedom of service regimen.

Provisional bonds and definitive securities

Our group of professionals also deals with provisional and definitive guarantees for participation in public and private tenders.

The provisional deposit or bond allows participation in tenders, guaranteeing the client the respect of the commitment taken by the contractor in carrying out and completing the work, and the guarantee of possession of the requisites required by the tender caller.

The final guaranty will have the purpose of cover any defaults by the tender winner and performer.

Thanks to our expertise in the field, we are able to stipulate provisional and definitive guarantees for any type of requirement.

Public tenders guarantee

In public tenders, a guarantee is the best way to demonstrate economic and financial capacity. To take part in a tender, the bidding company must have a series of requirements, including the economic and financial capacity of suppliers and service providers. In this context, it is essential to operate through specialized agencies that are able to provide the best support in the treatment of sureties and which can offer tailor-made solutions thanks to partnerships with leading insurance companies.

When it comes to managing the goods or services of the Public Administration, a call for tenders is launched, in which all the companies that meet the specific requirements, participate. The competition can be called by a local, national or international authority and at the end, the winning company will have to stipulate a contract and take care to manage what is the subject of the contract itself.

In particular, participating in tenders, involves several stages, ranging from preparation to final award. The main phases of these proceedings are:

• Preparation of tenders: the stage in which the call for tenders is drawn and bidding companies can only join in the case of compliance with the required requisites
• Management of tenders, ie all that time frame which includes the acquisition of documentation by the participating companies
• Award of tenders, the final phase

Rules of tendering

When participating in a call for tenders, what is essential to understand is that specific rules must be respected. If given rules are not respected, the companies wishing to participate are automatically excluded. Tenders are a very specific area of business where you need to move in a way to always guarantee maximum transparency and seriousness.

Consultation for tenders

To participate in tenders and understand the importance of the surety, you can choose to rely on FGIS, a professional intermediary with consolidated experience in the sector that for years has been working to assist its customers step by step. Given that public bodies require the stipulation of a surety policy, we respond to this requirement and provide provisional and final guarantees for tender’s bidders.

Balance payment in public works bonds

The balance surety is required as a guarantee for public and private procurement contracts. The guarantee allows the contracting entity to make the balance payment; it is typically done within 90 days of issuing the provisional test certificate. The guarantee will expire once the final test has been carried out, which must be carried out normally in the two years following the provisional acceptance.

In private contracts, payment guarantees are generally required, and they vary typically between 5% and 15% of the contract value. This guarantee therefore represents a guarantee for the payment of the specific balance, that is the amounts that must be paid by the client to completed works.

The issue of the surety policy to guarantee the balance payment is subject to:

• Ascertain the applicant’s real financial position
• Presentation of a regular execution certificate
• Verification of the presence of the final guarantee previously issued

Entities authorized to issue this kind of sureties can only be authorized banks or insurance companies.

When it comes to public procurement, a specific call for tenders is published and in this context it is extremely important to rely on those who are skilled and understand the rules of this business area. Getting a surety related to public tenders therefore may not be easy since there are many steps and paperwork.

FGIS is an intermediary that has been operating for years in the field of sureties and that puts its customers in contact with many qualified insurance companies giving them the opportunity to choose the best solution for any type of surety requirement.

The surety applied to public contribution interventions can be useful to request and obtain contributions, for example for training courses, or to start a new activity. There are different types of contributions that can be accessed upon release of a guarantee. For example:

• Guaranty for public grants, state or regional
• Guaranty Contributions – money disbursement Agencies projects
• Guarantees for non-repayable public, state or regional, grants

Guaranty for public contributions – anticipation: when needed

In order to facilitate economic development in supported or disadvantaged areas or sectors, public bodies such as Municipalities, Provinces, Regions and the State, provide subsidized loans, even non-repayable finances, to those Companies that make a specific request, usually supported by a Surety. Thanks to this type of surety, it is therefore possible to start up new activities, particularly in supported or disadvantaged areas that require specific help.

Those requesting this kind intervention must present a surety for public contracts in favor of the government beneficiary body.

The company interested in obtaining contributions must make a formal request and present a public contribution guarantee in favor of the financing Governing Body. The requesting subjects can therefore obtain an advance by providing a special guarantee to ensure the effective realization of the activities and of all the works and activities for which the contribution has been requested.

It is often difficult to start a business or expand one. The sureties “public funding advances” are a valid solution, and in a short time they can allow you to obtain a financial anticipation.

The procedure of guarantees for public financing anticipations is as follows:

1. the applicant submits an application;
2. the guaranty is issued in the interest of the party requesting the contribution towards and in favor of the body that grants it;
3. once the Entity authorizes the granting of the contribution, the applicant company may obtain an advance provided that a surety policy is stipulated guarantying the paying institution.

Surety policy in the context of Corporate contributions

At the basis of the “guarantees for public financing advances” there is therefore a surety policy, a form of guarantee, a contract where in addition to the contractor who requested the contribution and the beneficiary that is the institution that provides the contribution there is a third party, i.e. an authorized bank or insurance company that assumes the status of guarantor. The duration of this type of surety is not pre-established in fixed term, but varies according to the activity for which the contribution is requested.

FGIS is a consolidated reality in the field of insurance guarantees for loans and financing to Companies. We have been working professionally for years and we provide assistance for an accurate analysis of the requests for surety policies. We evaluate and analyze risks and support the customer step by step. We offer specialized and high-level services in the field of Surety.

Those who rely on us know that they are choosing high-level consultancy and that they can place total trust in us as we conduct every phase of our work in clear and transparent way. We try to make the sector of sureties a sector understandable to anyone and we operate with passion and in full respect of customer’s needs.

FGIS is a point of reference in the field of sureties and thanks to an extremely qualified staff it becomes easier to ask and obtain sureties for public funding.

Rent insurance guaranty

The rent insurance guarantee is typically made to guarantee a maximum amount of up to 12 months, for the entire period of the lease, from the time of communication of non-payment of rents until the communication of contract termination and eviction. Legal protection policy is also normally included.

Rental insurance guarantee covers rents both in residential contracts (for example 4 + 4 years or 3 + 2) and for nonresidential (business) rental contracts, for example studios or offices as well for commercial leases.

The rent guarantee insurance policy we can provide, protect the property owner much more than other financial products.

The guarantees, in order to effectively protect, must have the duration of the lease and a guaranteed amount of between 6 and 12 months. The cost of guarantee can amount to around 1 month rent value, but as an upfront premium (for ex. 4 or 6 years) over contract duration period.

Guaranty on rent: the alternative to the rental security deposit

Often, in lease contracts the tenant is asked to provide a security deposit to be issued by deposit or bank check in order to guarantee the property integrity. In this way, the landlord protects itself from damage caused to the property; but he is not protected in the case of tenant’s arrears.

This is why the “insurance rental guarantee” appears extremely effective, as it protects:

• The landlord, if the tenant does not pay even a single monthly fee
• The tenant, who for example for loss of work or other reasons not dependent on his will, is no longer able to make the payment and then is covered by the surety where the guarantor, i.e. the insurance company, has to pay, becoming responsible towards the owner of the property

A customs guarantee is required when the goods are temporarily imported.

Specifically, the presence of the guarantee is necessary in cases where there is no certainty that the goods will be exported within the prescribed time limit and when the payment of the relevant customs duties has not been made.

The surety is essential in consequence of the carrying out of import / export activities where the Customs Agency has decided to protect itself in issuing customs tariffs asking for a surety.

Guaranty for customs duties: the various types

In this context, some types of required guarantees are:

• Suspended deadline: as a guarantee pending payment of customs duties.
• Temporary importation: as a guarantee of payment of customs duties for temporarily imported goods
• Introduction of foreign goods in customs warehouses: guarantee on the imported goods and stored in the warehouse up to the payment of duties.
• Periodic and / or deferred payment of customs duties: the guarantee is required to insure the regular payment of customs duties by shippers and importers.
• Time zone – payment of indemnity for extraordinary services: the guarantee is required to guarantee the payment of allowances for customs personnel, for services provided beyond normal office hours.

Customs is the place where all goods entering and leaving the nation are registered and on which, in the case of non-EU countries, the payment of customs duties and taxes is requested.

The duty is collected on goods arriving from outside the nation and in particular from countries with which there are no specific preferential agreements.

In this case, the guarantee is very important because with this instrument the Customs Agency, which regulates customs, ensures the payment of tariffs in the event of impossibility on the part of the haulage company to fulfill the foreseen payments.

Calculation of customs fees

The calculation of customs expenses must be made according to the regulations of the Country of transit of goods and varies according to the type of goods transported.

So, the cost is never a fixed cost but a variable cost, established according to precise criteria.

If you are not an Italian citizen and you need a tourist visa for study or health reasons.

Some typical cases of surety for this subject:

• Surety for hospitalization or study reasons
• Surety for tourist visa
• Guaranty for foreign citizens entrance visa

Policy or surety for foreigners for entry visa

The policy or surety for foreigners for entry visas is referred to foreign citizens who come to Italy for a short period of time (for ex. visits, business, tourism) and those who enter for study purposes and who must prove to have, between the other requirements, sufficient financial means to sustain one’s livelihood for the duration of the stay in the Country. This is an essential requirement that must be demonstrated when applying for a visa at the Embassy (for entries up to 90 days).

In some cases, the Embassies, for the purpose of issuing the visa, only require the presentation of an insurance surety / policy for foreigners to guarantee the requested sums. When the foreign citizen does not have adequate own resources, it is possible that the person who invites him, stipulates a bank guarantee or an insurance surety / policy in his name.

Guaranty for foreigners: how to obtain a city entry visa

FGIS is able to find, through the insurance company, in a short time and at a competitive cost the policy necessary for issuing the visa. To obtain it, it is sufficient:

• Invitation letter
• Passport of foreign citizen requesting a visa
• Identity document of the inviting person, if a foreign citizen, a residence permit is also required
• Tax declaration form of the inviting person

Letter of invitation to obtain the surety for tourist visa

The invitation letter for foreigners can be issued by those hosting a foreign citizen for a certain period of time. It is required to demonstrate the availability of accommodation in which the foreign citizen will reside during his stay in Italy.

This declaration must then be submitted directly to the Embassy upon requesting a tourist visa. You may also be required to take out health insurance for foreigners.

Policy for foreigners: documents necessary for entry

Foreign citizens who come into the Nation for a short period (for ex visits, business, tourism) and those who enter for study purposes must show that they have, among other requirements, sufficient financial means for their livelihoods for the duration of the stay on the national territory. This is an essential requirement that must be demonstrated when applying for a visa at the Italian Embassy (for entries up to 90 days).

In some cases, the Embassies, for the purpose of issuing the visa, only require the presentation of a bank or insurance surety / policy to guarantee the requested amounts. When the foreign citizen does not have adequate own resources, it is possible that the person inviting him enters a bank guarantee or a surety policy in his name.

FGIS, is able to find the solution through Insurance Company, in a short time and at competitive costs.

In order to obtain the Surety policy for foreigners required to receive a tourist visa, it is sufficient to send:

• Invitation letter
• Passport of a foreign citizen requesting a visa
• Identity document of the inviting person, if a foreign citizen, a residence permit is also required
• Tax declaration form of the inviting person.

Guaranty for tourist visa

In case of the guarantee for tourist visa, the Government places as an obligation to those who live outside the European Community and wish to come to the Country for tourism or as guests of friends and family, to obtain a surety, proving the ability of the foreign citizen to be able to provide for his livelihood.

Should the means of subsistence fail, the guarantor insurance company will provide the necessary sum to provide the subsistence of the foreign citizen, within the guaranteed amount. The sum is established by the Ministry of the Interior and depends on the time spent in the Country.

The document must be presented to the Consulate or to the Embassy before arrival.

If you wish to host a non-EU guest citizen, you must be:

1. Italian citizen
2. foreign citizen with residence permit

In very simple terms, the foreign citizen who is visiting its relatives or friends must prove to be able to support himself financially. The guaranty policy for tourist visa serves precisely for this, ensuring that the non-EU citizen and those who host him, which we can compare to sponsors, have sufficient financial means to support him from the economic point of view.

The guaranty document may be issued by:

• a bank
• an insurance company
• a financial company

The substantial difference lies in the timing of release and the overall cost. The bank guarantee for tourist visa follows a much longer and “heavy” bureaucratic procedure, compared to insurance one.

The insurance surety for non-EU citizens follows a simpler and faster bureaucratic procedure. This presents a great advantage also from the point of view of costs.

One of the problems presented by the bank guarantee concerns the difficulty in having all necessary documentation.

What documents do you need to apply for a tourist visa guarantee?

If you are an Italian or foreign citizen with a residence permit, you can host someone living outside the EU as friend or relative.

Who must provide the documents, you or your guest? Both of them.

Documents that must be presented by the host:

• Invitation Letter
• Identity document, driving license or another recognized document as a passport
• tax code
• the paychecks of the last two months or another document certifying stable income: this is absolutely normal if you consider that this type of surety serves to show that you are able to financially support your guest

Documents that your guest must present:

• your guest must provide you with a copy of passport as a beneficiary of the surety you are asking for in his favor

The validity of this type of surety for non-EU foreigners is valid for no more than 90 days.

Surety given on study, work and hospitalization

The Surety given for study, work or hospitalization has the objective of ensuring that the non-EU citizen has the appropriate means of support, if he requires a visa for study, work or hospitalization. For the entire period in which the foreign citizen stays in the Country, the guaranty must ensure the appropriate means of support.

The means of subsistence and the amounts are established by directives issued by the Ministry of the Interior.

Surety given for study: what is it for?

The purpose of this guaranty is to demonstrate a certain financial capacity that can guarantee one’s livelihood during the stay.

There are different types of visa for the study:

• Internship;
• Scholarship;
• Study course;
• Professional training;
• University attendance;
• Novitiate.

However, obtaining a surety is not easy. For this reason, FGIS assists you and guides you in obtaining a surety thanks to partnerships with specialized insurance companies and intermediaries with consolidated experience in the sector.

The documents that must to be presented

For the surety for a study, work or hospitalization visa, the following documents must be presented:

• Copy of an identification document;
• Copy of residence permit;
• Last paycheck or income statement.

Who is the guarantor?

The guarantor is the insurance company or bank that acts as guarantor, i.e. guarantees for the foreign citizen and pays in the case of insolvency of the latter.

FGIS puts you in touch with specialized insurance companies and guarantees you a quick process.

Time and cost of bank or insurance guarantee

For those who have applied for a surety, the times are quite “narrow” and are around 48-72 hours. Payment can be generally made by bank transfer unless otherwise specified.

The documents shipment can be done by e-mail or by express courier.

There are many other reasons why a Surety may be necessary or useful.

For example:

• Insurance surety guaranteeing quarrying activity
• Surety provision for contributions to financial disbursement bodies
• Guarantees for public tenders
• Guaranty for judicial proceedings or law courts
• Guaranty for settlement agreements and payment plans with installments
• Guaranty for payment of debts in installments towards Institutions
• Posthumous ten-year guarantee
• Guaranty for prize competitions
• Guaranty for payment of inheritance taxes with deferred payment
• Guaranty for the activation of training courses
• …

FGIS is the specialist in the field of bonds and sureties, at your side to find the best solutions to each specific security need, both nationally and internationally.