Five Star Insurance Brokers Ltd. are able to place the following types of bonds:
A bond filed with a bid for a construction or other project which guarantees that if the contractor has the low bid and is awarded the job, the required performance bond will be furnished.
Contract Performance Bond
Contract bonds assure owners that the surety believes with such certitude that the principal will fulfill his contractual promises that the surety guarantees to do so, for free, if the principal doesn't.
In the case of performance bonds, the surety promises the obligee-owner that the principal-contractor will perform his promise according to specifications. If the obligor (principal contractor) defaults by not performing, the obligee (owner) is entitled, at the option of the surety, to either: have the surety fulfill the contract with the original contractor or a new contractor
have the surety fund the original contractor so he finishes OR
have the surety pay up to the bond penalty, i.e., be indemnified, up to the bond penalty amount, for the excess, if any, of the cost to have another contractor finish the job over the balance of the contract price not yet paid the original contractor.
Financial Institution Bond
Few industries have crime loss exposures equal to those faced by financial institutions. Several different financial institution bonds are available to cover these exposures and are used for the following:
stockbrokers and investment bankers
commercial banks, savings banks and credit unions
Commercial Surety Bonding represents a wide variety of bonds which normally respond to an act/law and can be part of a licensing requirement. As a general rule commercial surety bonds protect the consumer against fraud, misrepresentation, and compensation of monetary loss and are required by the Courts, Government bodies, financial institutions, and private corporations. (surety bond faq's)
Commercial Surety Bonds can be divided into four categories:
Customs & Excise Bonds
Customs and excise bonds are required by Federal and Provincial Government and guarantee payments of duties/taxes on goods brought into Canada. They also grantee the customs broker's performance, knowledge and expertise in customs clearance and ensure that regulations governing clearance of goods will be adhered to. One of the more common customs and excise bonds is the Bonded Highway Carrier, Freight Carrier, and Air Carrier Bond.
License & Permit Bonds
License and permit bonds are required by both Federal and Provincial Government and are part of a government body that represents the consumer. The bond protects the consumer against fraud, misrepresentation and compensates the consumer against potential monetary loss. The bond also ensures the applicant's compliance with the regulations governing that sector. An example is the Auctioneer License Bond.
Fiduciary Probate Bonds (filed with courts)
These bonds are required by the courts or Public Trustee when a person dies or becomes incapable of looking after themselves.
A Guardian Bond is required in the case where an individual has not made a provision to appoint someone to look after his/her affairs in the event of incompetence. The bond guarantees that the Guardian(s) will look after the incompetent's welfare and well being, and will not misuse the estate funds.
Administration Bonds, Foreign Executor Bonds, Administrator de Bonis Non, etc. are required when an individual dies without making a will or the trustee named in the will does not wish to serve as the executor. The bond guarantees that all creditors of the estate will be paid and that the assets of the estate will be divided amongst the heirs of the estate according to the terms of the will, if there is one, and in accordance with the act
Trustee Bonds are required by the court when bankruptcy occurs. The bond guarantees the trustee's compliance with the act and it also ensures that the debts of the estate will be treated in an equal and fair manner as prescribed by the laws governing bankruptcy.
Other Commercial Surety Bonds
This category of commercial surety bonds is what is referred to as "the sky is the limit". The bonds that fall under this category are those bonds that are not part of a law or lisencing requirement. There are many types of bonds that fall under this category with the most common being Lost Document Bond and Waiver of Probate Bond.