Surety Bond Insurance Coverage: Surety Bond Solutions with LMBF
Surety bonds aren’t like any other insurance product, in that they involve three parties as opposed to the typical two. Surety bonds are still paid for in premiums and are often mandatory depending on your hiring body. Surety bond insurance involves a principal, an obligee, and a surety. Similar to insurance, surety bonds function as a promise that business will be conducted in a professional and an ethical manner - and for many customers, it’s an indication of your trustworthiness and reputability as a professional. LMBF can start you with a free surety bond insurance quote today.
What Surety Bond Insurance Coverage Offers
Credit
As the business (or the principal) your surety bond insurance can provide you with credit and reputability, offering your client with confidence knowing that they may receive financial recourse should something go wrong or if the contract isn’t adequately fulfilled.
Security
Surety bonds ensure the client’s security when agreeing to work with you. Surety bonds are not a replacement for regular business insurance coverage, so they largely act as insurance for the customer - not the business owner.
Requirement
Most federal, municipal, and even private hiring bodies will require that you carry some form of surety bond before you can begin any work. This is because a surety bond will ensure that, if something goes wrong, your bond provides the client with financial recourse.
- Customer loss due to unethical business practices
- Negligence or inability to fulfill the terms of a contract
- Financial recourse
- Commercial property losses
- Losses covered by standard business insurance policies
- Criminal activities
What is surety bond insurance?
Surety bonds, or surety bond insurance, are unlike regular insurance (and they shouldn’t be treated as a replacement for a business policy) in that they involve three parties and are designed largely to protect the customer. The construction and contracting sector in Canada may be required to carry surety bonds in order to do work with any federal, municipal, or even private hiring body. Surety bonds will offer financial compensation if a contract is not fulfilled by the business carrying out a project.
Surety Bond Insurance for These Business Sectors:
Construction
- HVAC construction
- Commercial construction
- Residential construction
- Demolition
- Electrical installers
- Highway construction
Maintenance Industry
Manufacturing
- Metal manufacturers
- Autobody part manufacturers
- Chemical manufacturers
- Food manufacturers
Transportation
- Airlines
- Freight road transportation
- Courier companies
- Railways
- Trucking companies
Retail industry
- Liquor retail
- Grocery retailing
- Furniture retailing
- Garden supplies retailing
- Auto parts retailers
Wholesale Distribution
- Agricultural machinery wholesale
- Audio and video equipment retailers
- Bakery product wholesale merchants
Our Surety Bond Insurance Partners
LMBF is proud to offer surety bond insurance coverage to a variety of enterprises in the construction, contracting, manufacturing, and other industries that require this critical protection. Thanks to its surety bond insurance partners, LMBF can help you secure a surety product that offers security for your client and credit for your business. Start with a free surety bond insurance quote for your enterprise.
