Insurance for all your
Surety Bond needs

If you are a contractor in the Maritime provinces, you may need to consider a surety bond to protect yourself and your business.  

Bonding is different from taking out an insurance policy, a bond serves as a guarantee that work will be completed, rather than financial compensation if damage occurs.

What Is A Contract Surety Bond?
A Surety Bond is a contract between three parties best explained through an example:  

A local government needs a building constructed, so it puts out government tenders; a construction contractor wishes to place a bid on the job, however, the government wants some kind of guarantee that the contractor can fulfill all contractual obligations and complete the job if the contractor is the successful bidder. The contractor goes to a surety company for help to obtain a Surety Bond. 

The surety company has a strong financial reputation and guarantees to the government that the contractor will fulfill all obligations. If not, the surety company will deliver compensation to the government in the form of money. It is usually a certain percent of the amount of the contract.

In the event the surety bond needs to be paid out, the surety company investigates the claim to make sure it is valid. Once validated, they will pay the bond and the contractor will be required to reimburse the surety company.

What Insurance Do You Need?
A commercial guarantee is the most common form of bonding today, a few examples include:
  • License or Permit Bonding for plumbers, carpenters, and electricians. It guarantees that all the right building permits, including special licensing, will be obtained and that all work will be done according to local building codes and laws;
  • Public officials bonding for a Justice of the Peace;
  • Court Bonding to cover a wide range of legal issues;
  • Business services bonds are very important for services that enter people's homes or places of business, it guarantees no theft or damage will occur;
  • Customs bonding covers goods from another country and guarantees that all taxes, fees, and duties will be paid;
  • Excise bonding concerns importing goods into Canada and guarantees taxes will be paid in accordance with the Excise Tax Act.
If you would like to learn more about Surety Bond protection, or you would like a review of your current insurance coverage call, click, or visit to see what Huestis Insurance Group can do for you. 

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