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Contractor Liability Insurance Should Be In Place Before Getting Help

If you’re going to get help with a project, make sure you ask if someone has contractor liability insurance before they work with you. That way, you’re not stuck with someone getting hurt and costing you money. Here’s how to hire the right person with the right kind of coverage for any job.

One way to know if you’re working with someone with coverage is to just ask. Then you can ask them what kind they have because that will usually be enough to know if they are telling you the truth. If someone just tells you they are covered but they don’t know what kind of insurance they have, chances are it’s not in place or it’s old and expired. To find out if it’s true either way, try to ask for proof of it.

Contractors should only be able to work on jobs if you can prove they have a good history. This shouldn’t be that difficult, because if they are not able to show you that they have reviews online or are on a website for people that confirm they have a good background, you could be working with anyone. In other words, you want to find out if they’re really who they say they are. Otherwise, it could be hard to get good work done and if there are any mistakes you may not have any recourse if they are not able to be reached later.

Insurance is something that can be tough to get a hold of, but most people that have it should be sure whether or not it’s active. Sometimes when a contractor gets insurance, it takes a while for their coverage to start out. You’re going to find there to be quite a few options out there and you can just look up the various types of insurance that contractors can get through a search engine. Either way, you’re going to have to be intelligent about this or you may end up working with someone that just made up an insurance company.

After working with someone it’s best to deal with them on a regular basis if they are good. If not, make sure you leave a bad review somewhere so that others know what to expect. However, before you do this you’re going to need to make very sure that you contact them and see if they can make things right. Tell them that you’re not happy with how the work turned out and see what you can do before you leave a review on how you’re not that happy with it if they don’t do something different for you to make it right.

Contractor liability insurance has to be in place so you can be safe when you work with anyone. They need to have it so you’re not going to have to deal with being sued if they get hurt. Plus, it helps to get things replaced that may have been damaged during a job in some cases.

Learning About Surety Bonds – Differences Between Contract And Commercial Bonds

The surety bond market is incredibly diverse and the sheer number of bonds can be downright daunting. This can make the concept of surety bonds very frightening to many individuals. However, once you really begin delving into the bonds, you’ll find that they’re not all that complicated. In fact, there are two common types of surety bonds and both are commonly utilized throughout the country of Canada. Within this guide, you will learn about the contract surety bonds and the commercial surety bonds used in Canada.


Although the two groups are undoubtedly different to some degree, they also share some similarities. The most notable is the fact that all surety bonds involve three parties. If you’re somewhat familiar with surety, you’ll know all about the surety, principal and obligee. Regardless of the specific type of bond that you’re dealing with, these three parties will be present and they’ll always place the same role. At the same time, the surety bond will always protect one individual or group of individuals.

Contract SuretyCommercial and Contract Surety Bonding for Companies

There are numerous construction companies in Canada and each of these will be required to obtain surety bonds from a surety bonding company like ConstructionBond at some point or another as they decide to bid on jobs. This is where the contract surety enters the picture. In this type of scenario, the contractor is responsible for obtaining the surety almost always. In the event that the contractor is unable to complete the job or cannot do so within a reasonable time period, the obligee will be protected. They’ll be able to file a claim against the bond and seek reimbursement for their losses.

Commercial Bonds

When someone talks about commercial bonds they are referring to all bonds other than construction contract bonds. A commercial bond is obtained by Canadian businesses like Chubb to assure the government and public that the business will abide by the standards that are required by law. Commercial bonds can be broken down into several different categories such as license and permit bonds, tax preparer bonds, notary bonds, court/judicial bonds, and processor bonds.

Wrapping It Up

The truth of the matter is that contract surety and commercial surety are nearly identical. However, the biggest differences between the pair are why, where and how they’re used.

Is The Principal Protected By A Surety Bond

Protection when it comes to Surety Bonding

As a contractor, professional or business owner, you’ll likely come across a situation, which requires you to obtain a surety bond. In this type of situations, you’ll want to know precisely how the surety bond behaves. Does the bond provide you with protection or is it only designed to deliver protection to other parties? Below, you’ll figure out.

Surety bonding PROtection


Many people believe that the surety bond protects the principal. This simply is not the case. Surety isn’t insurance and it doesn’t provide the principal with any protection whatsoever. However, this doesn’t mean that you should scoff at the idea of surety. The truth of the matter is that surety bonds can be very beneficial for all parties involved, including the principal! Of course, there are some specific types of bonds, which can provide the principal with a little bit of reassurance, when doing business with others.

Subcontractor Bond

Large development projects require the involvement of general contractors and subcontractors who are required to be licensed in Canada. Of course, the general contractor is the primary responsible member of the team. To ensure themselves that subcontractors and suppliers fulfill their end of the bargain, they require them to post a subcontractor surety bond. If at any time, the subcontractor falters on the terms of the contract, the general contractor can file a claim against the subcontractor’s surety bond. This is basically the only way that general contractors will be protected under a surety bond.

subcontractor bond

Who Is Protected?

Truthfully, there is an array of different people and groups, who may be protected by the surety. The specifics will vary depending on the bond in question. In many situations, the bond will protect the public. This is the case, when dealing with license bonds. On the flip side, construction bonds are primarily put in place to protect a property owner or project developer. Unfortunately, the principal usually doesn’t receive any protection.


At the end of the day, the majority of bonds will not protect the principal. However, it can offer these individuals with an array of other benefits. With this in mind, you should remember that the bonds are not only a requirement, but also they’re beneficial and cannot be neglected.