Surety is an age-old form of legal contract and has a well-documented history in commercial and personal transactions around the world. A surety bond is a three-party agreement by which the surety binds itself to discharge the contracted obligations of a principal to an obligee in the event that the principal fails to fulfill such obligations.

Contract Surety

The construction industry is the major user of Contract Surety bonds. They are required on most government projects and are frequently specified in the private and institutional sectors.

Contract Surety bonds, through the surety company's strength and rigorous pre-qualification procedures, provide security to owners, sub-contractors and others that a contractor will transform plans and specifications into a timely, successful and complete project.

In the construction industry, the surety is usually referred to as the bonding company or surety company. The obligee is usually the owner but also may be a general contractor or a major sub-trade contractor. The principal is usually a contractor.

Commercial Surety

Commercial Surety bonds are a cost effective method of ensuring compliance with a variety of important laws and regulations. Common types of Commercial Surety bonds are custom and excise bonds, licence and permit bonds, fiduciary bonds and various other types of bonds.

Most Commercial Surety bonds are specified in the requirements of acts and regulations that pertain to a wide variety of business activities. These bonds provide financial protection to government bodies or consumers by guaranteeing that the insured (referred to as the ‘Principal’ in the bond) will comply with the applicable legislation.

Developer Surety

Developer Surety business is focused on providing surety products to the homebuilder and development industries. These Developer Surety products include:

• Bonds to Tarion Warranty Corporation in Ontario on behalf of condominium builders/developers to satisfy security requirements specified in provincial legislation
• Deposit insurance which permits condominium builders to access purchasers' deposits as a low-cost source of financing for the construction of projects

Featured Providers

The Guarantee Company of North America
www.gcna.com	Regional offices across Canada: - Toronto (Head Office) - Montreal - Vancouver - Edmonton - Quebec City - Halifax - Woodstock	In business since 1872, The Guarantee is a Canadian owned Specialty Insurer and offers the following products: - Contract Surety - Commercial Surety - Developer Surety - Crime – 3D / Financial Institution Bonds - Directors & Officers Liability Insurance - Credit Insurance - Guarantee GOLD® (high-value home & auto) - Guarantee SUPERIOR
The Guarantee is a Canadian owned property and casualty insurance company serving the insurance needs of North Americans since 1872 with our Head Office in Toronto, Ontario Canada. We are a 'specialty' insurer with expertise in Contract Surety, Commercial Surety and Developer Surety. As one of Canada's largest providers of Surety bonds, we guarantee sound advice, competitive pricing and expedient claims handling. We are product innovators with specialization in creating surety programs. In the United States of America, THE GUARANTEE COMPANY OF NORTH AMERICA USA, a subsidiary of The Guarantee Company of North America, underwrites Contract and Commercial Surety products across continental USA. The Guarantee is committed to delivering its products through the independent broker / agent distribution network throughout North America. More information is available at www.gcna.com. To find a broker in your area email findabroker@gcna.com. This ad contains general information and is not part of the policy. The terms of the insurance contract apply in all circumstances.