Secure the bonds your business needs
Our specialized surety advisors help businesses manage bonding and risk obligations locally, nationally and internationally. With access to a broad network of leading surety providers, we can help you secure the right bond and provide practical guidance to support your projects and long-term growth.
Contract Surety
Contract bonds that support project delivery
Also known as construction bonds, contract bonds provide assurance that contractual obligations will be fulfilled. We can arrange the following common contract bonds and related instruments:
Performance Bond
Guarantees that the contractor will fulfil its obligations to the project owner in accordance with the contract.
Labour & Material Bond (Payment Bond)
Guarantees that eligible subcontractors and suppliers will be paid for work and materials provided for the project, helping reduce the risk of lien claims against the owner.
Bid Bond
Provides assurance that a contractor is qualified and intends to honour the terms of its tender if selected.
Consent of Surety (Agreement to Bond)
Provides the surety’s commitment to issue the required performance and/or labour and material payment bonds if the contractor’s bid is successful.
Maintenance Bond
Guarantees the contractor’s obligation to correct covered defects in workmanship or materials during the maintenance period specified in the contract.
Commercial Surety
Commercial bonds that help meet regulatory obligations
Commercial bonds may be required to secure licensing, regulatory, fiduciary or tax obligations. We can help arrange solutions such as:
Required by certain businesses and contractors as a condition of obtaining or maintaining a licence or permit.
Guarantee payment of specified customs duties, excise taxes or other amounts owed to a government authority.
Court, judicial and probate bonds that guarantee the proper performance of fiduciary or court-appointed responsibilities.
May be required before an issuer replaces a lost financial instrument, such as a share certificate, debenture, warrant, bond or life insurance policy. The bond protects the issuer if the original instrument is later presented.
Support the temporary import and export of eligible goods or equipment by providing customs authorities with financial security under a carnet. This can simplify border procedures and reduce the need to pay duties and taxes at each entry.
Provide financial security to the Canada Border Services Agency for duties and taxes owed on commercial imports, helping eligible importers participate in the Release Prior to Payment program.
Developer Surety and Subdivision Bonds
Developer surety that supports project completion
Developer surety refers to surety bonding for real estate developers and land developers. It is a specialized area of the surety industry that provides financial guarantees to municipalities, project owners, regulators, and other stakeholders that a developer will complete required obligations.
The Navacord Advantage
Specialized expertise backed by national strength
Our surety specialists combine responsive local service with access to leading bonding markets and national resources. We work with you to understand your obligations, strengthen your submission and move efficiently through the bonding process.
Surety expertise
Work with experienced advisors who understand bonding, underwriting and contract requirements. We provide practical guidance to help you meet your obligations, strengthen your business and manage ongoing surety needs.
Responsive bond issuance
Our team helps streamline bid bond requests so you can respond to project opportunities with confidence.
National and international capabilities
Through our broad market relationships and global network, we can support bonding needs across Canada and in many international jurisdictions.
Surety insurance insights from our specialists
“Our role extends beyond arranging bonds. We help clients understand what sureties are looking for, partner in growing their success, educate and build the business practices that support long-term bonding success. When clients understand the risks and requirements upfront, they're better positioned to pursue new opportunities with confidence.” - Angela McKerlich, Senior Client Executive
"A surety bond is not insurance. It is a financial instrument issued on the strength of your financials, your track record and your character, and if the surety ever pays a claim on your behalf, you repay it under your indemnity agreement. The contractors who grow their bonding capacity understand that. They deliver financial statements on time, they flag a problem job early, and they keep an active conversation going with their broker about growth plans and upcoming projects so capacity is in place before they need it." - Clay Kraynack, Commercial Advisor
FAQs for bonding and surety insurance
The cost depends on the bond type, amount, term, underwriting requirements and the applicant’s financial strength. Rates vary by provider and risk profile, so an advisor should review your specific requirements before estimating the premium.
Factors that may influence the rate include:
- Bond type and amount
- Length of the obligation
- Financial strength, credit history and business revenue
- Experience, capacity and ability to fulfil the obligation
- Applicable licensing or regulatory requirements
Contractors are often required to provide bonds for public-sector projects, and private project owners may also make bonding a condition of bidding or contract award. Commercial bonds may be required for licensing, permits, customs, court appointments and other regulatory obligations.
Having an established surety facility can demonstrate that your business has undergone financial and operational review, which may help you qualify for bonded opportunities.
Both provide financial security, but they work differently. Whether a letter of credit is acceptable depends on the obligee and the contract requirements.
- Letter of credit: Issued by a bank and generally payable on demand up to a stated amount, subject to its terms.
- Surety bond: Issued by a surety provider and guarantees the principal’s performance or payment obligations, subject to the bond terms.
The term depends on the bond type and underlying obligation. Some bonds apply to a specific contract or defined period, while others remain continuous until cancelled or replaced. Your advisor can confirm the required term and any renewal conditions.
A bonded business has obtained a surety bond that guarantees a specified obligation to an obligee. Before issuing the bond, the surety typically reviews the applicant’s financial strength, experience, capacity and other underwriting information.
Requirements vary by bond, industry, jurisdiction and obligee. Applicants may need to provide financial statements, credit information, project details, licenses, experience records and other documentation.
If a valid claim is made, the surety investigates the circumstances and responds in accordance with the bond terms. Depending on the bond and situation, the surety may provide financial support, arrange for another contractor to complete the work or compensate the obligee, up to the bond limit.
Potential remedies may include:
- Provide financing for the principal to complete the project.
- Pay another company to complete the project.
Unlike traditional insurance, the principal is generally responsible for reimbursing the surety for losses and expenses paid under the bond.
