To
discuss your Bonding & Surety Bonds
needs contact Mark Holman or Paul Holman at
905-886-5630 or toll free
at 1-800-567-1279, or fill out
the online quote form.
Holman Insurance Brokers Ltd. are able to place the following
types of bonds: (For Surety Bonds See Below)
Bid Bond
A bond filed with a bid for a construction or other project which
guarantees that if the contractor has the low bid and is awarded
the job, the required performance bond will be furnished.
Contract Performance Bond
Contract bonds assure owners that the surety believes with such
certitude that the principal will fulfill his contractual promises
that the surety guarantees to do so, for free, if the principal
doesn't.
In the case of performance bonds, the surety promises the obligee-owner
that the principal-contractor will perform his promise according
to specifications. If the obligor (principal contractor) defaults
by not performing, the obligee (owner) is entitled, at the option
of the surety, to either:
- have the surety fulfill the contract with the original contractor
or a new contractor OR
- have the surety fund the original contractor so he finishes
OR
- have the surety pay up to the bond penalty, i.e., be indemnified,
up to the bond penalty amount, for the excess, if any, of the
cost to have another contractor finish the job over the balance
of the contract price not yet paid the original contractor.
Financial Institution Bond
Few industries have crime loss exposures equal to those faced
by financial institutions. Several different financial institution
bonds are available to cover these exposures and are used
for the following:
- stockbrokers and investment bankers
- finance companies
- commercial banks, savings banks and credit unions
- insurance companies
- commercial banks
Surety
Bonds
Commercial Surety Bonding represents a wide variety
of bonds which normally respond to an act/law and can be part
of a licensing requirement. As a general rule commercial
surety bonds protect the consumer against fraud, misrepresentation,
and compensation of monetary loss and are required
by the Courts, Government bodies, financial institutions, and
private corporations. (surety
bond faq's)
Commercial Surety Bonds can be divided into four categories:
Customs
& Excise Bonds
Customs and excise bonds are required by Federal and Provincial
Government and guarantee payments of duties/taxes on goods brought
into Canada. They also grantee the customs broker's performance,
knowledge and expertise in customs clearance and ensure that regulations
governing clearance of goods will be adhered to. One of the more
common customs and excise bonds is the Bonded Highway Carrier,
Freight Carrier, and Air Carrier Bond.
License & Permit Bonds
License and permit bonds are required by both Federal and Provincial
Government and are part of a government body that represents the
consumer. The bond protects the consumer against fraud, misrepresentation
and compensates the consumer against potential monetary loss.
The bond also ensures the applicant's compliance with the regulations
governing that sector. An example is the Auctioneer License Bond.
Fiduciary
Probate Bonds (filed with courts)
These bonds are required by the courts or Public Trustee when
a person dies or becomes incapable of looking after themselves.
- A
Guardian Bond is required in the case where an individual
has not made a provision to appoint someone to look after his/her
affairs in the event of incompetence. The bond guarantees that
the Guardian(s) will look after the incompetent's welfare and
well being, and will not misuse the estate funds.
- Administration
Bonds, Foreign Executor Bonds, Administrator de Bonis Non,
etc. are required when an individual dies without making a will
or the trustee named in the will does not wish to serve as the
executor. The bond guarantees that all creditors of the estate
will be paid and that the assets of the estate will be divided
amongst the heirs of the estate according to the terms of the
will, if there is one, and in accordance with the act
- Trustee
Bonds are required by the court when bankruptcy occurs.
The bond guarantees the trustee's compliance with the act and
it also ensures that the debts of the estate will be treated
in an equal and fair manner as prescribed by the laws governing
bankruptcy.
Other
Commercial Surety Bonds
This category of commercial surety bonds is what is referred to
as "the sky is the limit". The bonds that fall under
this category are those bonds that are not part of a law or lisencing
requirement. There are many types of bonds that fall under this
category with the most common being Lost Document Bond and Waiver
of Probate Bond.
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