There are dozens of different types of bonds which are divided into a 3 different categories:
When any government or large company hires a contractor, they will usually require that the contractor secure a construction 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.
Are you taking on a condominium project in Canada? Then you need to acquire developer surety bonds to meet Tarion’s requirements and satisfy your purchasers.
No matter your industry, we can help simplify the bond acquisition process. Whether you’re a freight forwarder, business owner, executor or otherwise, we’ll connect directly to a leading government bonds provider. Types of government bonds we offer:
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.
These bonds provide protection in legal proceedings to the respective parties.
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:
As a miner, you take on a vital role when it comes to reclaiming the land you disturb during a project. The reclamation standards are agreed upon between you and the governing body. But regardless of your ability to meet your contractual obligations, you need to secure the agreement with a reclamation bond.
Contractor insurance also known as general liability insurance for contractors is an insurance coverage that provides financial protection in the event a contractor causes loses, damages, or bodily injury to clients or third parties. This insurance kicks in to pay for damages (lawsuit settlement, repair costs, property damage, bodily injury) if the cause of the loss is insured by the policy.