Commercial Surety

Commercial surety bonds are critical to operations

Travelers Canada’s commercial surety team possesses the industry knowledge, business tools and service commitment to help customers assess their risks and take advantage of commercial surety bonding opportunities.

We specialize in bonding both domestic and international surety needs from the largest multinational companies to small local businesses. Industries we service include but are not limited to: financial institutions, law firms, healthcare, manufacturing, public utilities, retailers, service contractors, technology, telecommunications and transportation.

Following are some of the commercial surety bonds we provide to Canadian clients.

Fiduciary Bonds

Fiduciary bonds comply with probate and bankruptcy needs. They are often handled by lawyers whose clients are required to file security to comply with the courts or the public guardian and trustee. These bonds guarantee compliance with the requirements of law for faithful performance of duties.

Licence and Permit Bonds

These bonds are used to qualify those who wish to obtain a licence or a permit to exercise a particular privilege or engage in a particular business. Licence and permit bonds guarantee compliance with the statute, by law or regulation under which the principal is compelled to act. The laws are meant to protect the public against incompetence, misrepresentation, fraudulent dealings, physical damage, or bodily harm.

Customs and Excise Bonds

Customs and excise bonds are for the benefit of the federal government and guarantee that either taxes or duties or both will be paid by the principal when invoiced by the government.

This multi-purpose bond is required for the following activities:

  • Customs brokers licensing regulations
  • Temporary importation regulations
  • Transportation of goods regulations
  • Display goods temporary importation regulations
  • Customs bonded warehouse regulations
  • Customs sufferance warehouse regulations
  • Accounting for imported goods and payment of duties
  • Duty-free shop regulations
  • Other authorities may be accepted  

U.S. Bonds

Travelers Canada has the local ability and capacity to issue bonds in the United States. We underwrite bonds required at federal, state, county and municipal levels, and more. Bonds are issued from our Canadian offices using U.S. Travelers affiliated companies. This direct relationship results in the seamless processing of U.S. bonds. Contact us for more information about obtaining U.S. bonds.

Lost Instrument Bonds – Open or Fixed

Have you lost a stock certificate, cashier’s cheque or other valuable instrument? Losing an instrument can be very stressful. Fortunately, Travelers Canada offers lost instrument bonds for individuals and corporations. If an instrument in your possession is lost, stolen or destroyed, the lost instrument bond is necessary for the instrument to be replaced by the instrument’s issuing authority.

The purpose of the lost instrument bond is to ensure that the corporation, shareholders and transfer agents are protected against any claims that may arise as a result of the instrument being replaced. This bond also serves as a guarantee that if the lost instrument is found at a later point in time, it will be returned to the surety writing the bond for proper disposal so future economic loss from this instrument cannot occur.

Waiver of Probate Bond

Are you dealing with an estate that is not court probated and requires a transfer of a stock certificate, investment and/or mutual fund account, bank account or other valuable instrument? Estate matters can be very stressful for an individual who has to distribute the deceased’s assets. Travelers Canada offers the waiver of probate bond to an estate representative to help in such a situation.

In lieu of getting a will probated, which can be costly, financial institutions, transfer agents and others may ask the estate representative to post a waiver of probate bond in order to transfer and distribute the instrument/asset amongst the rightful estate heirs. In some situations it is more economical to pay for the bond premium than to pay the probate fees.

The bond protects the financial institution/transfer agent in the event that a legitimate claimant comes forward to make a claim against the instrument/asset owned by the deceased.

Excess Mail Insurance/Single Trip Security Shipment Coverage

Is your organization sending out securities of significant value that can potentially be lost in transit? Travelers Canada has the answer for how to insure security shipments efficiently and cost-effectively. We offer a program for single trip shipment coverage. This excess mail insurance product is designed to protect the shipment of securities (up to the purchase coverage limit) by an approved courier in the event of a notice of non-receipt made by the intended addressee. Should a non-receipt notice occur on the couriered security shipment, Travelers Canada would be in a position to provide the mandatory lost instrument bond to replace the lost security. Learn more.

Contacts

For more information about any of our commercial surety products, call your insurance broker or contact one of our experts.

Ching Mei Chen, Commercial Surety, 416.642.3746

Magda Pacheco, Commercial Surety Security Replacement, 416.642.3747