Contract Surety Bond Insurance Calgary
If your line of work requires a guarantee of a contract surety bond or a commercial surety bond, it’s time to consider surety bond insurance. Calgary workers can have peace of mind knowing that their Krywolt Insurance broker can provide reliable insurance solutions for their surety bond insurance needs, providing them with the protection that ensures all their business obligations will be met. Speak with a licensed insurance broker at Krywolt Insurance today about surety bond insurance in Calgary, AB.
What Is a Surety Bond?
A surety bond is a financial guarantee that provides assurances to the obligee in case the contractor fails to fulfill the terms and conditions of their contractual or legal obligations.
For example, if a construction company is hired to build a new office building but fails to complete the project according to the agreed-upon specifications and timeline as stated in the construction contract, the surety bond will provide financial compensation to the owner to cover any losses or damages incurred. This ensures they are not left in a vulnerable position due to the other party not fulfilling their contractual obligations. It also ensures the other party is held accountable for not fulfilling their obligations under the contract and discourages them from engaging in similar behaviour in the future.
Why Do I Need Surety Bond Insurance?
Calgary residents may be wondering why they need insurance for surety bonds. Surety bond insurance is a type of business insurance coverage that ensures a guarantee between two parties, providing financial risk protection in the event that one party fails to meet their obligations and they have surety bond insurance. Calgary workers would be transferring the risk of non-performance or default to the insurance company, giving you peace of mind and protecting your financial obligations within the contract. This type of insurance is commonly used in construction projects or when working with government contracts, as it provides assurance to the project owner that the work will be completed according to the agreed terms in the contract. It also helps contractors win bids and secure projects by demonstrating their financial stability and reliability when they have surety bond insurance.
Calgary professionals who are wondering if they may need surety bond insurance can speak to their trusted insurance broker at Krywolt Insurance today to see how they may benefit from this commercial insurance coverage.
What Types of Surety Bonds are Available?
There are two main categories of surety bonds: contract and commercial. A contract surety bond guarantees performance as per the terms of a contract, while a commercial surety bond is typically used to ensure compliance with laws or government regulations. At Krywolt Insurance, we provide protection for both in our options for surety bond insurance. Calgary workers and project leaders can have peace of mind knowing that they have financial security in the case of any unforeseen circumstances or potential breaches of contract. Whether it's a contractual agreement or a licensing requirement, with our comprehensive surety bond insurance, Calgary workers have the coverage they need for all their bonding needs.
There are a number of different types of contact bonds business owners can get in terms of surety bond insurance. Calgary businesses can get:
- Bid Bonds: Used during the tendering stage of a project, a bid bond provides an assurance to the project owner that the bidder in question has the financial means to carry out the project if they are awarded the contract. It provides a letter from the surety company that guarantees that the bidder will be able to enter into a contract and provide the required performance bond if their bid is successful.
- Performance Bonds: This type of surety bond aims to reassure the project owner that their project will be completed according to the terms of their legal contract. A performance bond guarantees the quality of work within a contract, and in the event that the contractor fails to meet the agreed-upon terms, the bond can provide financial compensation to the project owner to complete the project with an alternative contractor.
- Labour and Material Payment Bond: This ensures that the contractor will pay all the labour and material expenses associated with the project, protecting both the owner and subcontractors from any financial liability. In the event of non-payment, the bond can be used to cover these costs.
- Maintenance Bond: Helps ensure the owner of a completed project is protected from defects and faults in materials, workmanship, and design that arise during a specified period of time.
With surety bond insurance, Calgary businesses can cover several types of common commercial bonds, which include:
- License and Permit Bonds: A condition for obtaining a license or permit for various occupations or professionals. These can be set by different government entities, including the federal government, provincial government, and municipal government.
- Court Bonds: Also known as judicial bonds, these are required in legal proceedings to ensure that the defendant will fulfill their obligations. Includes estate bonds, attachment bonds, and mechanic's lien bonds.
- Fiduciary Bond: Also known as probate bonds, these are required from those administering a trust under court supervision.
- Public Official Bonds: Aim to ensure the integrity and financial responsibility of public officials while carrying out their duties. These bonds provide protection for taxpayers in the event of any malfeasance or misconduct by the officials.
- Miscellaneous Bonds: Refers to types of bonds that do not fit in the above categories and include warehouse bonds, utility bonds, and fuel tax bonds.
If there are any questions about what is covered under surety bond insurance, Calgary businesses should reach out to the trusted surety insurance brokers at Krywolt Insurance for answers. We also will provide no-obligation free quotes for surety bond insurance.
Who Needs Surety Bond Insurance in Calgary?
Now that you know what it is, can you benefit from having surety bond insurance? Calgary residents will find that having surety bond coverage is useful to any businesses that enter into a contract or need to abide by certain regulations or laws. By having surety bond insurance, Calgary businesses are protected in the event something goes wrong, and they cannot fulfil their contractual obligations. This includes:
- Contractors in the construction industry
- Manufacturing businesses
- Suppliers
- Businesses working on government projects
Surety bonds are commonly used in the construction industry to ensure that the project is completed as agreed upon in the construction contract. However, they are also commonly used in industries like real estate, auto dealers, and even finance to provide a guarantee of performance or to protect against financial loss.
Our Krywolt Insurance brokers will be able to let you know if your business may find it useful to have surety bond insurance. Calgary businesses can give our reliable surety bond insurance brokers a call today to get a free insurance quote or reach out to us online.
FAQs About Surety Bond Insurance: Calgary
Do I Need a Surety Bond if I Already Have Business Insurance Coverage?
Having insurance and having a surety bond is like having an apple and an orange. Yes, they both aim to provide financial protection, but they serve different purposes. Insurance typically covers damages and liabilities, helping to protect you as the insurance holder, while a surety bond ensures that you can guarantee a specific obligation or performance according to the terms of the contract, protecting the person or entity you entered into a binding contract with or who otherwise requires the bond.
Am I Legally Required to Have Surety Bond Insurance?
Calgary businesses may need surety bond insurance coverage in order to meet certain legal regulations for their industry. Additionally, some entities may not want to do business with you if you do not have adequate business insurance coverage, including surety bond insurance.
Calgary businesses often need to have surety bond insurance if they:
- Are in the construction industry and are doing work on public projects or need to meet contract requirements
- Are working on a development project for a municipality or other level of government
- To meet licensing requirements for your profession
- Comply with provincial regulations
Unsure about whether there’s a need for surety bond insurance? Calgary residents can speak to our Krywolt Insurance brokers about their coverage needs based on their industry requirements and unique insurance needs.
How Much Will It Cost in Alberta to Get Surety Bond Insurance?
Calgary insurance policies aren’t one-size-fits-all, and that holds true for surety bond insurance. Calgary workers and businesses who need surety bond insurance will find that it will typically cost anywhere from one to 15% of the total coverage amount provided by the surety bond, which itself costs 0.5% and 1.5% of the awarded contract price, including taxes. Other factors that may impact the cost of surety bond insurance Calgary policy seekers should be aware of include their risk level as an applicant, including their financial history, credit score, experience, and the type of bond they have.
Construction bonds will generally cost more due to the type of work and risks involved with the construction project, and the higher the value of the project and the longer the contract obligations, the more the surety bond and the insurance will cost. When you speak to one of our insurance brokers, make sure you clearly communicate your business needs and the contract details to ensure you can get a personalized and more affordable rate for your surety bond insurance.
What Are the Benefits of Getting Surety Bond Insurance?
Calgary residents may groan at the thought of getting yet another insurance policy, but there are multiple advantages to getting surety bond insurance Calgary workers and businesses can rely on. These include:
- Being able to ensure that any contractual obligations are met while providing your client with peace of mind knowing that they will be covered if you are unable to deliver on the service or project as agreed
- Provides your client with the necessary financial protection for any losses up to the bond limit should you be unable to fulfil the contract
- Allows you to comply with laws and regulations associated with certain industries
- Provides credibility that you are committed to fulfilling your contract obligations
- Transfers the risk of non-performance to your insurance company
- Provides project owners with project security
- Allows you to free up capital to reinvest that would have otherwise been used for letters of credit
How Do I Get Surety Bond Insurance in Calgary?
You need an insurance expert who understands surety bond insurance in Calgary to be able to define all the possible risks associated with your business so you get the best possible coverage to ensure that a single simple accident or oversight doesn’t overcome your business. You know your business; we know the risks and the ways to protect your business from potentially crippling lawsuits or losses with surety bond insurance in Calgary.
Speak to your trust broker at Krywolt Insurance to see if having surety bond insurance would benefit your business contract obligations. Give us a call today at 403-879-8660, or click the link below for a free quote or to get your surety bond insurance questions answered. We're ready to help fulfill your business insurance needs.
Why Choose Krywolt Insurance for Surety Bond Insurance?
There are a number of reasons why you should choose Krywolt insurance for all your business insurance needs, such as surety bond insurance. Calgary business owners who choose Krywolt Insurance can expect to receive:
- Personal attention
- Exclusive client management
- You’ll receive a competitive rate on a suitable policy year after year
- Krywolt customer care
- Responsive and friendly service
- Access to all major insurance providers
- We act for you, not the insurance company
- We’ll obtain multiple quotes for you on suitable policies from leading insurance companies and underwriters
- You’ll have us in your court if you need to claim
- We’ll do the leg work for you!
