Ask a GoForth Expert
- Is bonding the same in Canada as it is for businesses in the US?
Claudius du PlooyBusiness Law
Essentially, yes. Most commercial bonds in Canada are mandated by government bodies and agencies and ensure compliance with a variety of important laws and regulations. Bonds serve the same purpose as they do in the US in that they discharge contracted customers from the agreement if the service provider/company is unable to fulfill their obligations.
Most large property and casualty insurance companies have surety departments and therefore classify as surety companies. Surety companies provide businesses with bonding support and are reinsured by the Canadian government. There are major classes of commercial bonds: customs and excise, license and permit, judiciary, lost document, and various special bonds.
For more information on Bonding in Canada, visit: http://www.edc.ca/english/bonding.htm
About Claudius du Plooy
Claudius du Plooy, BComm, LLB, LLM is Founder of Claudius du Plooy Law Firm, a practice focussed on business law (corporate commercial law), securities law, commercial real estate development, entertainment law and international trade law. Claudius is passionate about SMEs.