Surety Bonds
Bonding & Surety Insurance
Contact our team today for more information – request a surety insurance quote online, by phone, or stop in at one of our locations.
What’s Surety Insurance and how do Surety Bonds work?
A surety bond isn’t typical business insurance for a few reasons:
- It involves 3 parties.
- It’s paid out to a client, not to your business.
- You are required to pay back the entire amount of the bond to your surety provider.
The 3 parties are your business (the principal), the surety, and your client (the obligee).
There are three common types of surety bonds:
Contract Surety Bond
Ensures the obligations of a construction contract/project will be met.
Commercial Surety Bond
Ensures compliance to all required codes (if your company requires a specific license to operate).
Court Surety Bond
Helps cover losses in the event of a court proceeding.
Construction
Manufacturing
Suppliers
Other types of contracts
Contact one of our surety insurance brokers in Calgary today for more information.
How much does a Surety Bond cost?
The cost of a bond depends on which one you choose and which surety insurance provider you go with, as there are many different cost structures. Generally, you pay between 1-15% of the total coverage provided by the bond. The higher the risk, the more you’ll pay. Construction bonds are often on the higher end as they’re considered to be riskier.
Your bond rate is determined by the following:
- The type of bond
- Length of the bond obligation
- The value of the bond
- Your risk level as an applicant including your financial history, credit score, business revenue, ability to complete the bond obligation, experience, licenses, et cetera
A surety insurance broker will be able to help you balance your coverage needs with your budget, as well as answer any questions you may have regarding your surety bond in Calgary.