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.