Loan insurance: guarantees the insured that their loans will be paid when their debtors become insolvent. Always taking into account the limits and amounts agreed upon in the policy.
For example, one company has a debt with another for a certain amount. Loan insurance ensures that, in the event of the debtor company’s definitive insolvency, the other company is guaranteed the payment of the receivables in its favor.
Surety insurance: the insurer undertakes, in the event of breach by the policyholder of its obligations, to indemnify the insured for the asset damage suffered within the limits provided for. All payments made by the insurer must be reimbursed by the policyholder.
For example, a construction company wants to carry out a public contract. To be eligible for this, the authorities require guarantees covering the agreed services. If it does not have the required capital, it can take out a surety insurance policy in which the insurer is liable in the event that the company is unable to complete the work.