Commercial Surety Bonds

Commercial surety bonds guarantee the obligee that the principal will perform duties in compliance with governing acts, regulations and by-laws. If the principal fails to comply with these regulations, the surety provides protection under the bond.

Economical Insurance provides the following commercial surety bonds:

• Canada customs and excise bonds - protect the federal government (obligee) against non-payment of duties and taxes by companies (principal) involved in importing and exporting goods into and out of Canada
• License and permit bonds - protect consumers against fraud and misrepresentation on the part of the principal. These bonds are payable to various licensing bodies, including both provincial and municipal governments (obligee)
• Fiduciary bonds - protect beneficiaries of an estate against losses arising from the actions of a trustee (principal) who has custody of the estate property being held in trust. These bonds are payable to the court (obligee)
• Lost securities bonds - protect issuing institutions (obligee) against double payout in cases where they must provide replacement documents to individuals (principal) who have lost their original certificates, such as Canada Savings Bonds or share certificates

For additional information about contract and commercial surety, talk to your independent insurance broker.