There are dozens of different types of bonds which are divided into a 4 different categories:
- Contract/Construction bonds
- License bonds
- Court bonds
- Commercial bonds
When any government or large company hires a contractor, they will usually require that the contractor secure a construction surety bond. The bond is the contractor’s guarantee to the obligee that he will perform as promised. If the contractor (the principal) should fail to perform, the surety company will pay out damages to the obligee. The surety company will then recover the amount of the claim from the contractor plus costs.
- BID BOND: A bid bond may be required of a contractor in order to submit a bid for a project. The bid bond protects the obligee in the event that the winning contractor is unable to take the job after securing the bid reimburses them the difference between the principal’s bid and the next lowest bidder.
If the contractor has the winning bid, the bid bond will convert into a PERFORMANCE BOND which guarantees that the job will be completed.
Types of Construction/Contract Bonds we provide:
- Construction Bid Bonds – Financial Security for Contract Bidding.
- Maintenance Bonds – Provides protection for a lengthier period of time.
- Performance Bonds – Guarantee of work being completed.
- Payment Bonds – Provides protection for payment workers.
- Subdivision Bonds – A bond used for subdivison development.
- Site Improvement Bonds – Making improvements to an existing project.
- Labour And Material Bonds – Helps cover Labour and Materials Cost.
- Surety’s Consent or Agreement to Bond – Agreement with the Bond Issuer.
- Bad Credit – Bonding for Businesses with poor credit.
- Fiduciary Bonds – Similar to Insurance (Protects your business)
Frequently asked questions regarding bid bonds
- How much do bid bonds cost?
- How to qualify for bid bonds?
- What is the purpose of a bid bond?
- What is the turn around times for bid bonds?
- How to apply for Bid bonds?
Frequently asked questions regarding performance bonds
- How much do these bonds cost?
- How do I Qualify?
- What is the Purpose of being bonded?
- What is the turn around time?
- How do I Apply?
These bonds are required by governments and municipalities in order to satisfy working requirements. The purpose of this bond is to provide protection to the public along with ensuring compliance for respective industries.
Types of License Bonds we provide:
- Alcohol Bond – Protects the government in the event tax and fees are not paid by businesses.
- Auctioneer Bond – Protects the customer against misrepresented auctioned items.
- Bailiff Bond – Required by a bailiff before employment begins and protects victims of misconduct.
- Collection Agency Bond – Guarantees ethical use of sensitive client information by agencies.
- Consumer Protection Bond – Protects clients from unauthorized use of their information.
- Direct Sellers Bond – Protects the customer that incurs damages as a result of a direct seller.
- Debt Repayment Bond – Protects customers from fraud or misconduct by debt repayment agencies
- Gas Bond – Required by gas installers or gas equipment installers before beginning work.
- Freight Broker Bond – Required by freight brokers before they can accept any orders.
- Home Inspector Bond – Required by home inspectors before conducting inspections.
- Insurance Adjuster Bond – Required by independent insurance adjusters before working.
- Immigration License Bond – Required by immigration consultants before beginning work.
- Livestock Dealer Bond – Required by dealers before buying, selling, and bidding on livestock.
- Mortgage Broker Bond – Ensurers that agents are compliant with provincial regulations and acts.
- Payday Lender Bond – Protects customers from fraud or wrong doings by payday lenders.
- Private Investigator Bond – Required by investigators & employees of the agency before working.
- Real Estate Broker Bond – May be required by realtors along with licensing.
- Telemarketing Bond – Protects customers from frauds and misconduct by telemarketers.
- Travel Agency Bond – Required by travel agencies before working with the public.
These bonds provide protection in legal proceedings to the respective parties.
Types of Court Bonds we provide:
- Appeal Bond – Acquired prior to appealing a court’s judgment to have it overturned.
- Executor Bond (Administration Bond) – Protects victims against fiduciary dishonesty and misconduct.
- Probate Bond – Protects the interest of the obligee by demanding the principal to be bonded.
- Guardianship Bond – Acquired by an individual that wishes to be a guardian of another individual.
- Notary Bond – Acquired by notaries to protect their signers.
Any bond that is not a contract bond is known as a commercial bond. These include but are not limited to fidelity bonds, business service bonds, and bonds required by governments to secure business licenses.
Types of Commercial Bonds we provide:
- Auto Dealer Bond – Used in the automobile industry for dealerships.
- Fidelity Bond – Businesses purchase this bond to cover themselves from fraudulent employees.
- Janitorial Bond – Janitorial companies use this bond to protect the client’s interest.
- Utility Bond – Protects Utility companies from defaults from clients.
- Customs Bond – Required by the Federal government of Canada for brokers.
- Medical and Medicaid Bond – Protects patients from fraudulent behavior.
- Lottery Bond – Required to be purchased by business that engage in lottery.
- Union Bond – Obtained by union workers.