Surety Bonds

Many contracts require construction companies to carry a surety bond. These risk management tools ensure contract completion and adherence to the terms of the agreement between project owners and construction companies.

If you have questions about surety bonds in Canada or want to obtain one for an upcoming project, the Buildsure team of construction experts is here to help. Connect with the team today to get a quote for a construction bond.

What is a Surety Bond in Canada?

In Canada, many large construction contracts require a surety bond. A surety bond is a three-party agreement in which the insurance company guarantees to the party requiring the bond (the project owner) that the principal (the construction company) will fulfill its contractual obligations.

Surety bonds compensate the project owner financially if the construction company fails to meet its contractual obligations. Surety bonds in Canada are commonly required in construction to ensure contractual performance and compliance with laws and regulations.

What is the Purpose of a Surety Bond for Construction?

The purpose of a surety bond for construction is to provide financial assurance and protection to the project owner that the construction company taking on the project will fulfill their contractual obligations. The surety bond will compensate the project owner if the construction company cannot meet its obligations.

How to Get a Surety Bond?

With the help of the Buildsure team, getting a surety bond is easy. The first step is to connect with one of our brokers who is experienced in construction surety bonds. The broker will review your bond requirements and source the best surety bond by accessing their network of surety bond providers. Working closely with a knowledgeable surety bond broker can help streamline the process and find the best bond for your specific contract.

FAQs of Surety Bonds for Construction

If you have questions about surety bond insurance, the Buildsure team is here to help. In the meantime, here are a few questions our clients typically have on surety bonds in Canada.

Who Can Issue Surety Bonds in Canada?

Surety bonds in Canada are typically sourced, on behalf of their client, by insurance brokers and issued by licensed surety companies. To ensure compliance with regulatory requirements, it's essential to work with reputable and experienced surety bond brokers, like the team at Buildsure. They will help you get the surety bond you need by leveraging their industry knowledge, expertise, and network of connections with various surety bond providers.

How Much Does a Surety Bond Cost in Canada?

The cost of obtaining a surety bond in Canada varies greatly depending on the type, amount, risk associated, project size, bond applicant's financial history and industry experience, and the project owner's requirements. Typically, the premiums for a surety bond in Canada are a percentage of the overall bond amount.

It is best to connect with an experienced surety bond broker to get an accurate estimate of a surety bond cost. They will take the time to assess your needs, evaluate your risk profile, and provide a personalized quote by accessing their network of surety bond providers.

Why Do Builders Love Buildsure?

Our Buildsure broker, Ryan, has been an essential part of our team, ensuring that we're covered for all eventualities as we tackle new projects and challenges in the homebuilding sector.

John Vranic

Vranic Homes

The in-depth knowledge of the construction sector has been instrumental in identifying potential exposures and crafting policies that address them comprehensively. Their responsiveness and attention to detail make them a pleasure to work with, and we highly recommend their services to anyone in the homebuilding industry.

Raj Rai

Raison Homes

Our broker has been an invaluable partner in helping us navigate the complexities of the homebuilding industry. They've taken the time to understand our business inside and out, providing us with personalized insurance solutions that offer the right level of protection at competitive rates.

Kevin Sharpe

Sharpe Industries Inc.

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