Exploring The License Bond – What Is It?
There are truly an abundance of professions within Canada. A large number of Canadian professionals have been required to go through a lengthy process, before they’ve been able to work legally within the country. Aside from completing the necessary schooling, these individuals will also need to acquire the license associated with their career choice. In order to gain that license, it will be necessary to obtain the related license bond. Below, you’ll learn all about the license bond and its use by construction companies within Canada.
What Is It?
As you likely already know, the various Canadian governments, including federal, provincial and municipal, have a lot of laws and regulations in place to prevent illegal activity. Although these laws may feel like a major hindrance, they’re typically put in place to protect the public at large. This is where the license bond enters the picture. This is a type of surety bond, which is often required by the Canadian governments. The bond is put in place to guarantee that the construction professional will abide by the laws and regulations, which govern their practice.
Without the license bond, you will not be able to acquire your license and will not be able to legally service clients in the country of Canada.
Protecting the Public
If you operate a construction business within the Canadian border, you may need to apply for a business license. First, you need to acquire a license bond, since this needs to be attached to the business license application. These documents ensure the regulating governing body that the business will comply with the laws and regulations of the license bond and business license. This form of security protects all consumers from fraud, bodily harm, incompetence, malpractice, and misrepresentation.
Examples Of License Bonds
When attempting to acquire a license bond, you should know that there might be a different name for the specific bond that you must acquire. Although they’re all very much the same, each profession’s bond may have a unique name. Below, you’ll find a list of examples.
Collection agency bond
Electrical contractors bond
Grain dealer bond
Private Investigations Bond
Road cut bonds
Again, the name may be unique, but the bond is virtually the same.
License Bond Expenses
The cost of the license bond will typically vary and will be formulated based on a number of factors. The most impactful will be your personal credit score. Since it can be nearly impossible to raise a bad score quickly, it is best to offset the increased cost by shopping around a little more. By taking the time to acquire quotes from numerous sureties, it will be possible to find a reasonable price, even if you have terrible credit.