What It Is And Who Needs One?
If you have a desire to operate your own business or serve the public in any way, you’ll most likely encounter the need to acquire a surety bond. There are thousands of professionals within Canada and these individuals were most likely required to do the same. Before you begin offering your services to the public, it is essential to analyze the information below.
The License Bond
Within Canada, a large number of businesses and professionals are required by law to obtain a license surety bond, before they can legally obtain their license. There are a few exceptions, so you’ll need to analyze the specific statutes, which govern your profession. Also, the laws may deviate to some degree from province to province.
Why Is It Required?
Initially, it may seem like the requirement of the surety bond is nothing more than a money grab. This isn’t actually the case. In fact, there are a few good reasons for the requirement. First and foremost, the requirement of the bond helps to protect the Canadian public at large. The bond guarantees that a business or professional will conduct themselves according to the Canadian federal laws, as well as any provincial laws that may govern their line of work.
Secondly, the requirement is to ensure that only reliable, worthwhile individuals are able to serve the public.
How To Get The License Bond
If you’ve hit a speed bump and need to acquire a license bond from a Canadian Surety Bonding Company, you’ll need to learn how to move ahead and call a brokerage like SuretyKings. The good news is that the mass majority of Canadian surety providers have simplified the process, so that you’ll be able to complete the application online. Before doing so however, it is often wise to shop around by obtaining and comparing quotes. Most companies will be able to provide you with a quote within 24 hours, so you can get your license bond and licensure rapidly.
Different Types Of License Bonds
Within Canada, there are thousands of individualistic professionals and unique license bonds to suit them. Below, you’ll find a breakdown of some of the most common.
Motor Vehicle Dealer Bond – If you wish to sell cars within Canada, you’ll need to acquire a motor vehicle dealer license. Within News Brunswick, dealers of new vehicles, used vehicles, wrecker dealers, and motorcycles use this bond. Before you can acquire the license, you will need to obtain and submit a motor vehicle dealer bond.
Collection Agency Bond – There is always some degree of risk, when a company is responsible for dealing with another individual’s money. This is where the collection agency bond enters the picture. The Consumers Protection Act and other statutes have been put in place to require the bond to help decrease the potential for devious behaviors and fraud.
Private Investigator Bond – Those that wish to become private investigators within Canada will be forced to obtain a bond. The bond amount will vary depend on your operational location. Within News Brunswick, the professional will need to post a $5,000 bond.
All in all, the license surety bond is truly an integral aspect of Canadian business. It is there to provide protection to the public and can be used to hold the professional responsible for malicious behavior. To read about how much bonding you need in place, refer to CSLB.