Guaranty Insurance

Guaranty insurance is a type of coverage that ensures financial obligations or commitments are met, typically in business transactions. If a party fails to fulfill their obligations, such as paying a loan or completing a contract, guaranty insurance provides compensation to the affected party. This type of insurance is commonly used in real estate transactions or construction projects, where it protects against the risk of default. Essentially, it acts as a safety net, offering assurance that financial commitments will be honored, which helps build trust between parties involved.