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The Five Things Your Business Needs to Know about Commercial Surety

The Five Things Your Business Needs to Know about Commercial Surety
The term “commercial surety” is used to describe a variety of different bond types. These bonds: 
  • Satisfy or guarantee fiduciary obligations, legislative and/or contractual obligations 
  • Protect the consumer against fraud, misrepresentation and compensation of financial loss
Here are 5 things your business needs to know about commercial surety, from our friends at Trisura

  1. Commercial Surety Bonds can be used to guarantee performance of non-construction related contractual obligations.
  2. Commercial Surety Bonds can replace letters of credit. They are generally more cost effective and while they prequalify the principal’s character, capacity and capital, they do not require the principal to post collateral as security, thereby preserving capital. 
  3. Commercial Surety Bonds are usually priced between 0.5% and 3% of the bond obligation. 
  4. Commercial Surety Bond premiums and bond wordings are typically standardized. The difference between surety companies lies in their appetite, service offerings and their ability to assess credit risk. 
  5. Commercial Surety Bonds are often required by federal or provincial legislation and guarantee that the principal is in compliance with the respective regulations, however they are becoming more commonly used by private owners to secure contractual obligations.
EasyInsure provides surety bonds across Canada and our mission is to provide the right bond at the right price. The EasyInsure bonding specialists will design a tailored bonding package for your organization and will negotiate on your behalf with the bond underwriters in Canada. If you would like to discuss commercial bonds or inquire about a quote, reach out to us: or give us a call: 1-800-679-2640