Insurance guarantees are formal undertakings to fulfil the payment of another entity’s debt, or perform their obligation, if they default. More flexible and cost-effective than traditional bank guarantees, they assist clients to raise off-balance sheet financial facilities and secure contracts more readily (allowing them to decrease their collateral requirements or increase their working capital.)
Our specialist Trade & Construction Guarantees team focuses on addressing the risks of non-delivery, non-performance and non-payment in the construction and logistics and clearing and freight forwarding (trade) industries
Trade guarantees typically include:
• Customs guarantees
• Transnet guarantees (freight rail, National Ports Authority and South African ports operations)
• Airline guarantees
• Fuel guarantees (commercial)
Construction guarantees cater for the full spectrum of building needs, including:
• Performance guarantees
• Advanced payment guarantees
• Retention guarantees
• Materials on/off site guarantees
• Bid bonds.
Making a movie on time and on budget won’t win it any Oscars, but attempting to do even that exposes producers, investors, actors, directors and everyone associated with the production to significant risk.
Our specialist Film Guarantors team has a keen understanding of the filmmaking process, as well as the financial pitfalls that exist within the environment. We insure South African movies, TV series and documentaries (and co-productions with international production houses) against the costs associated with any delay in production.
We provide incisive insurance solutions based on assessment of a project’s script, budget, time frame and, ultimately, the feasibility of it meeting its backers’ obligations and generating a return on their investment.
Cover includes the costs of fulfilling the obligation to complete and deliver the film and the provision of “finishing funds” if it runs over budget. (Film producer’s indemnity insurance, which covers sets, props, wardrobe, equipment, illness of nominated cast and crew members, and vehicle or personal accident cover, are not included and must be separately obtained.)
Early intervention is key to containing cost overruns, and our involvement in the production process from script to screen means we are able to monitor progress and costs off-site (via our unique app), diagnose potential glitches and take swift remedial action whenever necessary.