- How much does contract & commercial surety cost in Rainy River?
- The cost of contract & commercial surety in Rainy River depends on your specific details, coverage, and deductible. The best way to know is a free quote — as an independent broker we compare 17 insurers to find your lowest price.
- How do I get contract & commercial surety in Rainy River?
- Request a quote online in minutes or call Insurabiz at 613-355-3130. We'll compare our full panel of insurers to find the right contract & commercial surety for you in Rainy River.
- Why use a broker for contract & commercial surety in Rainy River?
- A broker works for you, not one insurer. We shop the whole market at once to find the best contract & commercial surety coverage and price in Rainy River — with local advice and an advocate at claim time.
- What is a surety bond?
- A surety bond is a three-party guarantee. The surety, a licensed insurer, promises the obligee, such as a project owner or regulator, that the principal, your business, will meet a specific obligation. If you fail and the surety pays the obligee, your business must repay the surety under the indemnity agreement you signed when the bond facility was set up.
- How is a surety bond different from insurance?
- Insurance transfers your risk to an insurer that expects to pay some claims. A surety bond protects the obligee, not you, and the surety expects no losses because it only bonds businesses it believes can perform. If it pays a claim, it recovers the full amount from your company and any personal indemnitors, so a bond behaves like bank credit.
- What are bid, performance and payment bonds?
- A bid bond guarantees you will sign the contract at your bid price and provide the required final bonds. A performance bond guarantees the contract will be completed. A labour and material payment bond guarantees that subcontractors and suppliers of labour and materials on the project will be paid. Public owners often require all three on larger construction contracts.
- When are bonds mandatory on Ontario public contracts?
- Under Ontario's Construction Act and O. Reg. 304/18, a contractor on a public contract of $500,000 or more must provide both a performance bond and a labour and material payment bond. Each must cover at least 50% of the contract price and be issued by an insurer licensed in Ontario to write surety and fidelity insurance.
- How do sureties decide how much they will bond?
- Sureties look at character, capacity and capital: your reputation, your ability to manage the work, and your financial strength, especially working capital. From that they set a single project limit and an aggregate limit for your total backlog. Accurate CPA-prepared financial statements and a current work-in-progress schedule are the foundation of any increase.
- Do I have to sign a personal indemnity?
- Usually, for owner-managed businesses. The general indemnity agreement makes your company, and often its owners and related companies, responsible for repaying any loss the surety pays on your bonds. As your company's capital and track record grow, sureties may agree to limit or release personal indemnity, so it is worth reviewing at each annual renewal.
- How much does a surety bond cost?
- Bond premiums are a rate applied to the bond amount, set by your financial strength, the type and length of the obligation, the bond size and your track record. Licence and customs bonds are usually simpler to underwrite than performance bonds. Clean, timely financial statements are the most reliable way to improve both your rate and your limits.
- Do importers need a customs bond?
- Importers that want CBSA Release Prior to Payment privileges must post financial security in their own name. A customs bond only needs to cover 50% of the CBSA's calculated requirement, with a minimum of $5,000 per business account, while a cash deposit must cover the full amount. A bond keeps that cash in the business instead of on deposit.
- What happens if the owner claims I've defaulted?
- Notify your broker and surety immediately, keep working unless you have advice otherwise, and gather your contract, change orders and correspondence. The surety will investigate independently. If the claim is valid it may finance completion, arrange another contractor or pay subcontractors, then seek repayment from you and your indemnitors under the indemnity agreement.
