Bonds and Surety Insurance Products

Compare 16 products offered for Bonds and Surety Insurance from 9 companies including Liberty International Underwriters - Australia, Euler Hermes Australia Pty Ltd, and QBE Insurance (Australia) Ltd .

Our Bonds and Surety Insurance Tool allows you to compare every plan offered by Canada's leading insurance providers. Curious about this coverage area? The Frequently Asked Questions can help you determine what sort of product you should be looking for.

Compare Bonds and Surety Insurance Policies

Products 1 to 10 of 16
Product name Max Coverage Min Premium Exclusions
Surety by AIG Australia Ltd Max Coverage N/A Min Premium N/A


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Surety Bonds by Assetinsure Pty Ltd Max Coverage N/A Min Premium N/A


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Surety Risk Mitigation Solutions by Bond and Credit Company Pty Ltd Max Coverage N/A Min Premium N/A


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Contract / Performance Bonds by Underwriting Australia Pty Ltd Max Coverage N/A Min Premium N/A


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Deposit Bonds by Underwriting Australia Pty Ltd Max Coverage N/A Min Premium N/A


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Commercial Bonds by QBE Insurance (Australia) Ltd Max Coverage N/A Min Premium N/A


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Contract Bonds by QBE Insurance (Australia) Ltd Max Coverage N/A Min Premium N/A


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Surety by Liberty International Underwriters - Australia Max Coverage US$1,000M Min Premium N/A


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Aussie Bonds™ by SPRIG Insurance Pty Ltd Max Coverage N/A Min Premium N/A


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Off the Plan Bonds™ by SPRIG Insurance Pty Ltd Max Coverage N/A Min Premium N/A


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Frequently Asked Questions

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What Are Surety Bonds?

A surety or surety bond is a contract between three parties as a way to guarantee a financial obligation as part of the terms of a contract. The three parties involved are:
  • the principal (client)
  • the surety (guarantor)
  • the obligee (party requiring the bond)

The surety ensures that the obligee is paid an agreed amount if the principal fails to meet the terms of a contract. This is designed to protect the obligee against a financial loss if the principal fails to meet a stipulated obligation.

Surety is not insurance but a form of credit used as a guarantee. Therefore if the principal does not fulfil its bonded obligation, the obligee can make a claim demanding that the surety company satisfy the obligation or pay the bond penalty.

The surety company has the right to reimbursement from the principal in the case of a paid loss or claim.

Who Needs Surety Bonds?

Many different types of business and industry use bonds for financial guarantees. The construction industry is required by law to use certain types of bond. This is to ensure that contractors will adhere to the conditions laid out by a project owner in order for work to be carried out as detailed in a bid and to the specifications of the contract.

Various types of government (federal, state or municipal) require bonds so that certain business activities comply with laws and regulations.

What Types of Bond Are There?

There are two types of surety bond: a commercial surety bond and a contract surety bond. Commercial surety bonds require signed applications and a current financial statement. There are four types of commercial surety bond:
  • license and permit bonds
  • court bonds
  • public official bonds
  • miscellaneous bonds

Contract surety bonds are commonly used in the construction industry to guarantee the performance of a contract. The following types of contract surety bond are:

  • contract bonds
  • bid bonds
  • performance bonds
  • payment bonds
  • maintenance bonds

Other types of surety bond include:

  • business service bonds
  • penal bonds
  • electronic surety bonds

How Much Do Surety Bonds Cost?

As there are many different types of surety bond, each one will have its own cost structure. The surety bond rate will be calculated depending on the credit score of the principal plus any other risk factors.

While the principal will generally pay 1-15% of the bond amount they will not have to pay the entire total.