Commercial surety bonds are critical to the operations of many commercial companies. Industries requiring these types of bonds include but are not limited to financial institutions, law firms, healthcare, manufacturing, public utilities, retailers, service contractors, technology, telecommunications and transportation.

For a consumer, this means that commercial surety bonds protect against fraud, misrepresentation, and compensation of monetary loss. Commercial surety bonds can be used to guarantee performance of non-construction related contractual obligations.

A surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract.

Fiduciary bonds comply with probate and bankruptcy needs. They are often handled by lawyers whose clients are required to file security to comply with the courts or the public guardian and trustee. These bonds guarantee compliance with the requirements of law for faithful performance of duties.

License and Permit Bonds These bonds are used to qualify those who wish to obtain a license or a permit to exercise a particular privilege or engage in a particular business. License and permit bonds guarantee compliance with the statute, by law or regulation under which the principal is compelled to act. The laws are meant to protect the public against incompetence, misrepresentation, fraudulent dealings, physical damage, or bodily harm.

Customs and Excise Bonds Customs and excise bonds are for the benefit of the federal government and guarantee that either taxes or duties or both will be paid by the principal when invoiced by the government.

This multi-purpose bond is required for the following activities:

  • Customs brokers licensing regulations
  • Temporary importation regulations
  • Transportation of goods regulations
  • Display goods temporary importation regulations
  • Customs bonded warehouse regulations
  • Customs sufferance warehouse regulations
  • Accounting for imported goods and payment of duties
  • Duty-free shop regulations
  • Other authorities may be accepted

Lost Instrument Bonds – Open or Fixed:

Have you lost a stock certificate, cashier’s check or other valuable instrument? Losing an instrument can be very stressful. Fortunately, Travelers Canada offers lost instrument bonds for individuals and corporations. If an instrument in your possession is lost, stolen or destroyed, the lost instrument bond is necessary for the instrument to be replaced by the instrument’s issuing authority.

The purpose of the lost instrument bond is to ensure that the corporation, shareholders and transfer agents are protected against any claims that may arise as a result of the instrument being replaced. This bond also serves as a guarantee that if the lost instrument is found at a later point in time, it will be returned to the surety writing the bond for proper disposal so future economic loss from this instrument cannot occur.

Contract Surety - A surety bond is a written agreement where one party, the surety, obligates itself to a second party, the obligee, to answer for the default of a third party, the principal.

Contract Surety Bonds provide financial security and construction assurance on building and construction projects by assuring the project owner (obligee) that the contractor (principal) is qualified to perform the work and will pay certain subcontractors, laborers, and material suppliers.

Contract surety bonds include:

bid bonds, which provide financial assurance that the bid has been submitted in good faith, and that the contractor intends to enter into the contract at the price bid and provide the required performance and payment bonds.

performance bonds, which protect the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.

payment bonds, which guarantee that the contractor will pay certain subcontractors, laborers, and material suppliers associated with the project.

maintenance bonds, which normally guarantee against defective workmanship or materials for a specified period.

subdivision bonds, which guarantee to a city, county, or state that the principal will finance and construct certain improvements such as streets, sidewalks, curbs, gutters, sewer, and drainage system

Fidelity Bonds - A fidelity bond is a form of business insurance that offers an employer protection against losses – either monetary or physical – caused by its employees' fraudulent or dishonest actions. Fidelity bonds are often held by insurance companies, banks and Financial Institutions and brokerage agencies, which are specifically required to carry protection proportional to their net capital. Among the possible forms of loss, a fidelity bond coverage includes fraudulent trading, theft and forgery.

COVERAGE HIGHLIGHTS

  • We have several markets for any type and class of bonds, which are Insurance Companies of Canada’s A.M. Best rating of "A++ Superior”
  • We can offer Canadian bonds as well as Cross Border bonding, such as Customs and Excise bonds as well as multiple other categories.
  • We can offer Fidelity Bonds for up to $25,000,000 Limit of Liability.
  • Fidelity Bonds a/o Financial Institution Bonds can be customized to include multiple additional coverage options, such as Professional Liability, Employment Practices, Kidnap and ransom as well as Identity Fraud Expense Reimbursement.




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