Insurance guarantee as a form of security for claims from a construction works contract

Abstract

The concerns aspects of an insurance guarantee as a form of securing claims arising from a construction contract. The legal basis of this institution was presented, based on the regulations of the Civil Code, the Act on insurance and reinsurance activities and the Public Procurement Law. Various claims that can be secured in the form of an insurance guarantee are discussed, including a guarantee of payment for construction works, a guarantee of proper performance of the contract and a guarantee of removal of defects and faults, indicating their application in practice. The article highlights the advantages of insurance guarantees, such as limiting the financial risk of the parties and no need to freeze funds, which makes them an attractive alternative to guarantee deposits or other forms of security.