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Bonding & Surety Insurance

The right coverage unique to your needs

As a general or subcontractor, you’re often asked to secure surety bonds or surety insurance by clients – and if you work on a public project, you may even be required to have it. If you’re not sure what surety bonds are or how they work or simply looking for the best surety bond broker in Calgary, Rogers Insurance can help.

We have an entire department dedicated to surety insurance, with one of the largest bonding portfolios in Western Canada. Our hands-on, human-first approach means exceptional customer service for you while our expertise and experience mean you can trust you have the bond you need.

Rogers Insurance is affiliated with the Calgary Construction Association, Alberta Roadbuilders & Heavy Construction Association, Surety Association of Canada, Alberta Construction Association, Canadian Construction Association and Albert Ready-Mixed Concrete Association.

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:

  1. It involves 3 parties.
  2. It’s paid out to a client, not to your business.
  3. 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 four 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.

A contract surety is the most relevant to the construction and manufacturing industries. In this type of surety coverage, a bond is purchased by contractors to cover any remaining and consequential costs of a contract where your company is unable to fulfill the full terms and conditions. The client will receive bonds to complete the project and reduce their financial loss. These bonds can include:

  • Performance Bond – guarantees that the principal will perform its obligations.
  • Labour and Material Payment Bond – guarantees that the principal will pay its subcontractors and suppliers.

There are also bonds available for the tendering stage of contract acquisition. These are evidence to a potential client that you are qualified for the contract and will likely be able to obtain the required bonds if you win the bid for the project.

Who needs surety insurance & bonds?

If you’re a contractor, you may require bonds. They are most common in the construction industry but are also found in manufacturing and other types of businesses, too.

You may need bonds as your client may require it. This is most commonly found in government projects but private clients may also stipulate that all contractors have bonds.

If you’re looking to win a project bid, having bonds for the tendering stage may make you look like a more appealing, trustworthy candidate. As bonds protect the potential client (it’s essentially insurance for your customer), it gives them peace of mind.

We provide surety bonds to the following industries:

  • Construction
  • Manufacturing
  • Suppliers
  • Other types of contractors

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.

Working with the Best Surety & Bond Insurance Brokers

Established in Calgary in 1977, Rogers has been a trusted surety & bond insurance broker for decades. As an independent, employee-owned brokerage, we work with a large number of surety companies to provide you with choice in your coverage. We take care of the research and price shopping for you, delivering competitive surety & bond insurance quotes.

Our brokers are experienced, knowledgeable and professional. They can do the following for you:

  • Help determine your insurance needs.
  • Deliver competitive surety insurance quotes and surety bond quotes.
  • Help your business balance coverage requirements with the budget.
  • Act as your insurance resource and advise you.
  • Advocate on your behalf in the event of a claim.

Our hands-on, human-first approach to insurance has set us apart in this industry. Experience it for yourself by requesting a surety & bond insurance quote online, by phone, or come meet us in person at one of our offices.

Resources

Bond Application Form (pdf)


Who We Have Helped

When real life happens

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Fire Loss

A metal recycling company in Calgary suffered a major fire loss on their premises involving scrap metal, where the piles of metal heated and self-combusted, starting a huge fire. When they were told what happened was not insurable, Rogers’ own David Chiu stepped in and hired a fire investigator.

Account Executive: David Chiu
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