How to get a Surety Bond
There are many Canadians, who will proceed through their entire lives, without ever needing to obtain a surety bond. Others will be required to obtain a bond every year. Initially, the concept of the surety bond can be overwhelming and the thought could very well give you a fright. This is truly a misconception. The truth of the matter is that obtaining surety products has gotten much easier over the years and it is now possible to submit your application online. Within this guide, you’ll learn all about obtaining a surety bond.
Identify Your Needs
One thing that many people fail to realize is that surety bonds are enormous and very diverse. The term surety bond is often thrown around to cover a wide array of different products. When one person determines that they need a surety bond, they need to understand that the specific bond needed will vary from that of the next person. So, before you can move ahead, you need to identify your specific needs. This may require referring to the laws within your specific province, as well as the Canadian federal laws.
Figure Out The Amount
After you’ve identified the specific type of bond needed, you’ll next need to consider the bond amount. The bond amount will vary incredibly and will be determining by a number of different parameters. First, you should consider the bond type. Some bonds are cheaper than others. Secondly, your province will play a major role in figuring out the precise cost. If you’re trying to acquire a court bond, the judge will generally set the amount. Once you’ve figured out this amount, you might be astonished by the quantity. Don’t be! This is where the surety provider will enter the picture.
Depending on the specific type of bond that you need, you may need a handful of documents to get the bond. Although the specifics will depend on the bond type, some of the most commonly needed documents will be listed below.
- Annual financial statement
- Liquid asset information
- Net worth and finances
- Continuity plan
- Business plan
- Work on hand
Again, not all of these documents are always necessary.
Now, it is time to get down to work. Once you’ve acquired the information above, you’ll know precisely what is needed. You should begin visiting the websites of Canadian surety providers. The mass majority of these groups will offer an online application or quote form. It is highly pertinent that you take advantage of this offering. By obtaining and comparing quotes from numerous groups, you will eventually be able to pinpoint the best price for your specific situation.
Remember that your personal credit score will play a major role in your final price figure. A handful of other factors, such as business history and finances, may also be impactful.
Agreement And Payment
After you’ve completed the steps above and have found a good price, a surety provider like ConstructionBond will present you a bond agreement. Be sure to carefully read through the paperwork, before signing at the bottom. An attorney may be needed, so you can avoid surprises and unfavorable terms. Once you’ve agreed to the terms, you will want to pay the fees and acquire your Surety Bond from ConstructionBond.