Understanding surety bonds Canadian construction contracts often stipulate wrap‑up liability coverage and require contractors to coordinate with project‑specific builders risk policies. Municipal permitting and provincial building code compliance can influence insurance terms, as non‑conformity may void coverage in the event of a loss. Hold‑harmless and indemnification clauses in subcontract agreements need to align with your insurance policy's contractual liability provisions. Completed operations liability can remain for years after a project is finished, so limits should account for long‑tail exposures and potential defects.
Overview
A surety bond is a three-party guarantee ensuring contractual or regulatory obligations are met. Canadian construction contracts often stipulate wrap‑up liability coverage and require contractors to coordinate with project‑specific builders risk policies. Municipal permitting and provincial building code compliance can influence insurance terms, as non‑conformity may void coverage in the event of a loss. Hold‑harmless and indemnification clauses in subcontract agreements need to align with your insurance policy's contractual liability provisions. Completed operations liability can remain for years after a project is finished, so limits should account for long‑tail exposures and potential defects.
Who is involved Canadian construction contracts often stipulate wrap‑up liability coverage and require contractors to coordinate with project‑specific builders risk policies. Municipal permitting and provincial building code compliance can influence insurance terms, as non‑conformity may void coverage in the event of a loss. Hold‑harmless and indemnification clauses in subcontract agreements need to align with your insurance policy's contractual liability provisions. Completed operations liability can remain for years after a project is finished, so limits should account for long‑tail exposures and potential defects.
Common Losses
• Principal: the party performing the obligation • Obligee: the party requiring the bond • Surety: the guarantor • Canadian construction contracts often stipulate wrap‑up liability coverage and require contractors to coordinate with project‑specific builders risk policies. • Municipal permitting and provincial building code compliance can influence insurance terms, as non‑conformity may void coverage in the event of a loss.
Why bonds are not insurance Canadian construction contracts often stipulate wrap‑up liability coverage and require contractors to coordinate with project‑specific builders risk policies. Municipal permitting and provincial building code compliance can influence insurance terms, as non‑conformity may void coverage in the event of a loss. Hold‑harmless and indemnification clauses in subcontract agreements need to align with your insurance policy's contractual liability provisions. Completed operations liability can remain for years after a project is finished, so limits should account for long‑tail exposures and potential defects.
Core Coverages Surety bonds guarantee performance rather than protect the purchaser from loss. Canadian construction contracts often stipulate wrap‑up liability coverage and require contractors to coordinate with project‑specific builders risk policies. Municipal permitting and provincial building code compliance can influence insurance terms, as non‑conformity may void coverage in the event of a loss. Hold‑harmless and indemnification clauses in subcontract agreements need to align with your insurance policy's contractual liability provisions. Completed operations liability can remain for years after a project is finished, so limits should account for long‑tail exposures and potential defects.
Talk to Boardwalk
Canadian construction contracts often stipulate wrap‑up liability coverage and require contractors to coordinate with project‑specific builders risk policies. Municipal permitting and provincial building code compliance can influence insurance terms, as non‑conformity may void coverage in the event of a loss. Hold‑harmless and indemnification clauses in subcontract agreements need to align with your insurance policy's contractual liability provisions. Completed operations liability can remain for years after a project is finished, so limits should account for long‑tail exposures and potential defects.
Choosing Limits
We help businesses understand when surety bonds are required. Canadian construction contracts often stipulate wrap‑up liability coverage and require contractors to coordinate with project‑specific builders risk policies. Municipal permitting and provincial building code compliance can influence insurance terms, as non‑conformity may void coverage in the event of a loss. Hold‑harmless and indemnification clauses in subcontract agreements need to align with your insurance policy's contractual liability provisions. Completed operations liability can remain for years after a project is finished, so limits should account for long‑tail exposures and potential defects.
