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While most Canadian bonding companies operate in the same manner, they will vary in some business aspects. A surety’s main interest is to provide consumers with assurance that public service providers will comply with a specific contract. When choosing a bonding company, many consumers will solely make their decision based the annual bond rate. Of course, this is very important, but it should not be the only factor considered. Instead, you should consider each surety’s reputation within the community and learn more about bonding (Click here for faq).
Licensed Surety Companies
You should never purchase a bond from an unlicensed surety company. This could potentially risk your interests in a particular business deal, because most obiligees will not accept a bond from an unlicensed surety. If you do not want to experience any delays in the contractual process, skip all bond companies that are not licensed in Canada.
A.M. Best Company
The A.M. Best Company was developed for the sole purpose of helping consumers find the best companies within the insurance industry. More than 3,500 insurance companies have been issued an A.M. Best Credit Rating. If you are searching for a reliable and reputable surety with an A-Rating, you should definitely check out this company’s website.
Government Approved Surety Companies
A substantial amount of money and assets can be riding one business contract. This is why it is crucial to purchase a bond from sureties that are “T-Listed”. The Department of Treasury Listing of Approved Sureties has been received approval to write bonds for various types of project, even government contracts. Each surety will undergo an extensive process, in order to be placed on this list.
Before purchasing a surety bond from a specific surety bond company like ConstructionBond, be sure to do extensive research on each available option. There are many things to consider and if you are in need of a license and bond in multiple provinces, the bond capacity will play a huge role in determining, which surety to do business with.
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- Qualifying for a surety bond as a contractor
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- How to apply for a construction bond – A complete contractor’s guide
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