Bonding And Surety
Upper Canada Commercial Insurance Group is proud to offer its contractors a full range of bonding and surety services. We make the process as simple as possible, providing solutions for new contractors, and improved terms and conditions for well-established contractors.
Upper Canada Commercial Insurance Group constantly strives to achieve three main goals:
- Provide the bonding limits you require;
- Negotiate the best terms and conditions to control your costs;
- Negotiate favorable security on your behalf, to limit your indemnity.
What Is A Bond, And Why Do You Need One?
When a person hires someone to do work at his home or on a large project, one of the first questions that comes up is whether the contractor is licensed, bonded and insured. People who carry this type of insurance are referred to as being "bonded."
An employer or company that is either required by law or that wants to increase credibility, pays a premium to an insurer called a bonding company.
If a job is performed incorrectly and results in a loss for the customer, the customer can file a claim for damages with the bonding company. This minimizes the financial risk for the client.
An Overview Of Products Available
Contract Surety Bonds
This type of bonding is usually required of general contractors on public projects, but many subcontractors also find that they are being asked to provide bonds. An increasing number of private project owners are requiring bonds as well.
A surety bond is an instrument under which one party guarantees to another that a third party will perform a contract.
Most common form forms of Contract Surety Bonds:
Bid Bonds, Consents of Surety, Performance Bonds, Labor & Material Bonds, Multi-Year Renewable Bonds & Pre-qualification Confirmation Letters
Commercial Surety Bonds
Commercial Surety Bonds cover some of the bond types considered necessary for government regulations or statutes related to the courts.
Most common forms of Commercial Surety Bonds:
Fiduciary Bonds, License & Permit Bonds, Customs & Excise Bonds, Court Bonds, Lost Document Bonds and Consumer Protection Bonds.
These bonds support large development companies that wish to provide bonds rather than letter of credit to secure their residential development obligations to municipalities or corporations.
Example: Hydro One Bond issued for development of new subdivisions