Move Your Business Forward with Our Surety Bonds

Your Charlebois Trépanier insurance broker is your best allied to get a surety bond. The broker will guide you and assist you with the process.

The surety bond allows a legal entity or person (the security) to fulfil the obligations of another person (the principal) in the event of default toward a third person (the beneficiary).

It is a guarantee contract that involves three parties:

  • The security or principal: the party who will perform the obligation
  • The surety: the party who guarantees to the beneficiary that the principal can perform the obligation
  • The beneficiary or obligee: the recipient of an obligation

This type of guarantee can replace bank bonds that usually freeze your funds, is a good performance guarantee for the project owner or recipient and encourages fair competition.

Learn About the Different Types of Surety Bonds

Call our surety bond experts! They will walk you through the decision-making process and explain differences between the many options available to help you better protect your business financial situation.

There are several types of surety bonds. Here are some of the most common ones.

Contract surety bonds

This type of surety bond will serve to guarantee that the principal, or most often the contractor, will follow the conditions of a contract.

  • The Bid Bond

    It guarantees that the owner will pay the price indicated on the bid submitted in the event the contractor secures the contract. A letter of engagement is often provided with the bid bond and binds the security to supply other bonds required, such as the performance bond and the wages and materials bond in the event the contractor is awarded the contract.

  • The Performance Bond

    It guarantees the performance of a contractual obligation to ensure the work is performed as specified in the contract. It may also be a legal obligation to ensure compliance with laws or municipal regulations.

    For a client, it represents the guarantee that the contractor will perform the work as described in the bid. The property owner or beneficiary avoids financial losses should the contractor be unable to finish the work.

  • The Labour and Material Bond

    For the owner, it is the guarantee that all parties involved will be paid and that the completed project will be free of any lien or legal mortgage. As the client, make sure to have the correct bond form included in your contract bond requirements. Call us to discuss!

  • The Maintenance Bond

    It is a guarantee for the owner that the contractor will remedy any defect or deficiency that could result from the work performed over a period of about one to three years.  It provides a guarantee for facility repair and upkeep for a period of time. In some contracts, the owner may exchange holding funds for a maintenance bond.

Commercial surety bonds

  • The Licence or Permit Bond

    There are several types of licence and permit bonds that may be required prior to issuing a license or permit for a certain type of activity. 

    In certain business activities the bond will comply with a statute law or municipal regulation to protect the general public. It provides a guarantee to the consumer should the contractor or the principal default.