License and Permit Surety Bonds
Delivering License & Permit Bond Solutions Across Canada
What are License & Permit Bonds?
Many government bodies across Canada require that prior to operating a business. That business must have the required licenses and permits and once operating must abide by the terms and conditions of those licenses or permits. In addition to having those licenses and permits in place, those government bodies will commonly require the businesses to post a bond which guarantees that they will operate their business in accordance with the terms of the license or permit.
The Top 3 Most Requested License & Permit Bonds
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Freight Broker Bond
A BMC 84 Surety Bond required by the Federal Motor Carrier Safety Administration for all freight brokers operating in the USA.
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Cannabis License Bond
Licensed cannabis producers, manufacturers, packagers, labelers, and importers operating in Canada require a Cannabis License Bond.
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Road Cut Bonds
Road cut bonds are required by various municipalities when a contractor is going to alter municipal road assets.
Who needs a License & Permit Bond?
The below industries are just a few of the many industries that require a license or permit bond to operate in Canada.
Auctioneers License Bond
Any individual acting as or operating an auction sales business is required to perform the business according to the obligations set out in their auctioneer’s license. Certain governments across Canada require that auctioneers bond a surety bond to guarantee they perform the obligations of their license.
Bailiff Bond
A bailiff bond is required in Ontario for anyone acting as a bailiff and ensures they abide by the laws and statues which govern the activities of a bailiff.
Brewer’s & Wort Manufacturer’s Excise Duty License Bonds
Brewers licensed under the Excise Act that are also licensed to manufacture wort require a Brewer and Wort Manufacturer’s Excise Duty License Bond.
Brewer’s Excise Duty License Bond
Brewers licensed under the Excise Act that do not manufacture wort require a Brewer’s Excise Duty License Bond.
Wort Manufacturer’s Excise Duty License Bond
Wort manufacturers licensed under the Excise Act that do not manufacture beer require a Wort Manufacturer’s Excise Duty License Bond.
Spirit License Bond
Licensed spirits producers and packagers operating in Canada require a Spirits License Bond.
Tobacco License Bond
Licensed tobacco product manufacturers operating in Canada require a Tobacco License Bond.
Cannabis License Bond
Licensed cannabis producers, manufacturers, packagers, labelers, and importers operating in Canada require a Cannabis License Bond.
Tobacco Excise License Bond
Licensed tobacco manufacturers, importers, and prescribed persons who acquire excise stamps under Canada’s tobacco stamping regime in accordance with the Excise Act (2001) require an Excise Stamp (Tobacco) Bond.
Collection Agency Bond
A Collection Agency Bond (sometimes called a Debt Collector Bond) is a type of surety bond that promises that the applicant will follow the results and regulations of their professional license as a collection agent.
Electrical Contractors Bond
A number of provincial bodies and electrical contractor’s associations require that members of those bodies post a bond ensuring that they abide by the conditions of their license.
Freight Broker Bond
A BMC 84 Surety Bond required by the Federal Motor Carrier Safety Administration for all freight brokers operating in the USA.
Fuel Tax Bond
A fuel tax bond is required by the government of Ontario to ensure that anyone selling fuel remits the required taxes to the appropriate government body.
Grain Dealer Bonds
As a grain dealer, in a number of provinces you are required to post a bond that you will abide by the applicable laws relevant to running a grain dealing operation.
General Surety Bond (Alberta)
The general surety bond in Alberta provides security to the Alberta government to ensure various business owners operating within those industries comply with the applicable license requirements. These include action sales, collection agents, debt repayment agencies, direct sellers, electricity markets, employment agents, fund-raising businesses, home inspection, natural gas markets, payday lenders, prepaid contractors, retail home sales, time shares and point based contracts and high cost credit providers.
Highway Transportation Bonds
A number of bonds are required in Canada for bonded highway carriers, bond freight forwarders and bonded warehouses. These bonds require the carrier to account for goods in transit and pay applicable duties and taxes. We also offer access to several US trucking bonds including the BMC-84 bond.
Motor Vehicle Dealer Bonds
Car dealers are required to have a motor vehicle dealer bond in place prior to securing their license. These bonds protect consumers from fraud or misrepresentation.
Private Investigator Bonds
It is a requirement that anyone acting as a private investigator must be licensed and bonded. This includes private investigators, security guards and security consultants.
Road Cut Bonds
Road cut bonds are required by various municipalities when a contractor is going to alter municipal road assets. This could include sidewalks, road and curbs. The bond ensures that the contractor altering these road assets put them back to their original condition upon completion of the project.
Real Estate Broker Bonds
Various province requires real estate agents to supply a real estate broker bond. These ensures that agents act in accordance with their license and can include obligations to manage trust funds appropriately.
Contractor’s License Bond (Quebec)
In Quebec a contractor’s license bond is compulsory for all contractors. It is designed to compensate any customer who suffers damage due to the execution or non-execution of construction work. The required bond varies from $20,000 to $40,000.
Quarry Permit Bonds
Quarry permit bonds are required in some provinces and require the operator of the quarry to post this bond to ensure they abide by the conditions of their license or permit to operate the quarry.
Direct Sellers Bond
The Direct Sellers Act requires people performing door-to-doors sales or other similar methods of sales to provide a bond to insure they practice these sales according to the regulations set out in the Act.
Travel Agent Bonds
Various government bodies require travel agents to provide a bond to ensure that they handle customer funds according to the regulations set out for travel agents.
FCA is Canada’s License & Permit Bond Expert Since 1919
FCA has been providing Canadian companies with surety bonds since 1919. We have set the industry standard for turnaround time for both new and existing clients. We pride ourselves in ensuring our clients never miss out on an opportunity.
FAQ
For the most part government bodies only ask for small bonds under $50,000 to cover these obligations. These bonds generally cost between $200 – $500 annually depending on the size and class of bond required.
At FCA we make this process easy. Given the majority of these bonds are small we call these quick write bonds. To issue them we require basic information about your company and answers to a few underwriting questions. Once we have those we can secure these bonds for our client’s same day, often within a few hours.
FCA provides numerous other license and permit bonds required across Canada and the US. Please reach out to a member of our surety team to have a discussion regarding your license and permit bond requirements.
Why Choose FCA Surety?
Ease of Doing Business
We set the industry standard for turnaround time for both new and existing construction bond clients, you can expect excellence.
Trusted by Surety Markets
Outstanding relationships with all of the most reputable construction surety bond markets in the industry, giving you the power of choice.
Surety is What We Do
Our industry-leading team boasts seven full time dedicated surety professionals with a combined 80+ years of construction surety bond experience.
Testimonials
GPT
Chris Dardarian and FCA were great to work with! They provided timely and comprehensive advice and a product that suited our needs. Our situation was complicated by COVID but the transaction was handled efficiently.
Mo
FCA is one of the best companies we have had the pleasure of working with so far. Very professional, fast and timely. Looking forward to continue working with them.
Muzammil
Jamie Collum from FCA did a great job in assisting me throughout the process. Not only from bonding aspect but other aspects to relating to obtaining approvals and insurance Would definitely and highly recommend them.
Get A Free Consultation Today!
It all starts with a conversation today with one of our surety bonding experts. Once we determine which type of surety bonds you require, we will work tirelessly to expedite these bonds for you.