Canadian Surety Bond
Within Canada, there are numerous federal and provincial laws, which regulate businesses and other professionals. In fact, many businesses will not be able to offer their services to the public, until they’re properly bonded and licensed. If you’re going to run a business in the country, there will undoubtedly be a need for surety. If you’ve made it this far, you’re likely dealing with this very problem right now. The good news is that acquiring a surety bond in Canada isn’t too difficult. Below, you’ll learn precisely how to acquire the bond, so you can begin generating an income.
Characteristics Of A Good Surety Provider
One of the biggest obstacles you’ll face is the need for a good surety issuer. Canada’s surety market is truly over saturated with providers and this can complicate the process substantially. With this in mind, you will want to look for a few key attributes. These will be listed below for your convenience.
- The surety provider should be familiar with your industry or line of work
- They should be well aware of the local and national markets, which pertain to your business
- They need to consistently get involved with local and national surety associations
- Should be skilled in finances and accounting
- The surety provider should be wholeheartedly interested in your well being and success
- Reputable and well respected
If you’re able to find a provider, who exhibits all of these traits, you’re in luck.
In order to truly find a reliable surety provider, you’ll need to make contact with them directly. By directly speaking with the surety provider, you’ll be able to develop a better understanding of their business, experience, and knowledge. Remember that many surety issuers also deal with insurance. Although these companies may be great, they might also focus too much on the insurance aspect of the business and may have very little knowledge regarding surety. Be sure to ask the individual some pointed questions regarding surety bonds. If they’re able to answer quickly and accurately, you can rest assured knowing you’ve found a good provider.
Preparing For The Prequalification Process
Every surety company has its own standards and requirements that must be followed, when underwriting a surety bond. However, these are commonly shared among surety companies throughout Canada. For instance, you are more than likely going to have to undergo a rigorous process known as prequalification, before you can even be considered for a bond. The underwriter is going to ask you tons of questions, request your credit report, and collect information about you and your company. This whole process can take a bit of time and may even try your patience.
If you want to speed up the process, it will help, if you try to prepare in advance.
What To Compile?
You will need to compile a list of your key employees and the role they play in your business. For instance, this may include your project and assistant managers, developers, and architects. Make sure that you have a detailed copy of these employee’s resumes, as well.
Surety companies base a lot of their research on the financial stability of your company, so you want to make sure that you have all your financial statements in order. This should include a list of your liquid and business assets, debts, and the previous year’s income tax record.
Submitting The Application
Once you’ve worked through the steps above, you’ll want to go ahead and begin working on the application. As technology has become more prevalent in the industry, more and more providers have begun accepting applications online. This is great for the consumer and makes the process much easier. Completing the application can be done within a matter of minutes, but you may need to wait a short period of time to acquire your quote.
If you agree with the quoted price, you can go ahead and make the initial payment, sign the agreement and acquire your bond. If not and you would like a more favorable price, you should proceed through the process again.
Although the information above may pertain to one surety provider, you should understand that each issuer would have a unique application process. Be sure to make contact with your surety company of choice, so you can learn the specifics, before plowing ahead.