Commercial Bonding

What is Bonding?

Bonding, sometimes referred to as suretyship, is an 'agreement' between the Surety (insurance company) and the project Owner to ensure that a contract will completed as agreed. The Contractor pays the Surety a fee to post a financial guarantee (the Bond) that in the event of a failure by the contractor to complete, will endeavor to finish the job.

The bond, or financial guarantee, is not an insurance policy but rather more comparable to a bank loan. When you borrow funds, you sign an endorsement that says you are responsible for paying the loan back. The contractor, when it comes to bonding, must also sign an 'indemnity agreement' promising to pay the Surety back if the bond is ever called upon.

If you are a contractor, and want more information about becoming "Bonded", call Atkinson & Terry today. We'd be happy to send you a complimentary information package and provide a very competitive fee.

Contact us today at (604) 596-1717 or email for more information.