Bonds are financial guarantees that are often required to secure a contract or license.
There are many different types of bonds available to fill requirements for business clients who need to provide a secondary financial guarantee. Some commonly arranged bonds are described below:
A bond filed with a bid for a construction or other project which guarantees that if the contractor has the low bid and is awarded the job, the contractor will fulfill the contract at the bid price and the required performance bond will be issued.
Contractor Performance and Labour & Material Payment Bond
Contract bonds assure owners that the surety stands behind the Contractor and if the Contractor fails to fulfill it’s contractual obligations the surety guarantees to do so, at no cost to the Owner.
License & Permit Bonds
License and permit bonds are required by both Federal and Provincial Government and are part of a government body that protects the consumer. The bond protects the consumer against fraud, misrepresentation and potential financial loss. The bond also ensures the applicant's compliance with the regulations governing that particular sector. Examples are:
- Electrical Safety Act Bonds
- BC Safety Authority Bonds
- Travel Agent Bonds
- Financial Institution Bonds
- Customs & Excise Bonds for taxation, for bonded warehouses, highway freight and air carrier.
Fiduciary and Probate Bonds
Fiduciary and Probate Bonds are filed with courts. These bonds are required by the courts or Public Trustee when a person passes away or becomes incapable of taking care of their own affairs. Examples are:
- Probate Bonds
- Guardian Bonds
- Administration, Executor Bonds
- Trustee Bonds
Discover more about our small business insurance policies
For more information about our small business insurance offerings and to determine what coverage is best for your business, contact us. You may also request a Small Business Insurance quote online.