Surety
With over 60 years experience in contract and commercial surety, Economical is an experienced provider you can trust. We work through independent brokers across Canada.
What is Surety?
Surety is the business which involves one party agreeing to be responsible for the debt or obligation of another party.
Surety involves three parties:
- obligee: the party to whom the bond is payable in the event of a default,
- principal: the party on whose obligation is guaranteed, and
- surety: the insurance company.
A surety bond protects the obligee against losses, up to the limit of the bond, that result from the principal's failure to perform its obligation or undertaking. We offer two major classes of surety bonds: contract and commercial.
Unlike insurance, a loss paid under a surety bond is fully recoverable from the principal.
