Surety Bond (re)Insurance
Surety Bond (re) Insurance (SBI) gives surety companies reinsurance capacity of 100 per cent, enabling them to provide Canadian companies with the bonding support required to conduct business overseas.Business Benefits
- Minimized risk: By minimizing the risks for your surety company, SBI facilitates your access to bonding capacity in the market.
- Access to surety bonds: EDC has fronting agreements with international institutions, so companies without existing surety lines can obtain the bonds you’ll need.
Details
Qualification Criteria
Cost
More information
Contact Us
Request more information about SBI or call 1-866-283-2957 weekdays between 8 a.m. and 6 p.m. EST.
Details
For companies with no existing surety line, EDC offers full reinsurance support through one of its surety-partner fronting agreements. Once your signed application is approved, EDC issues you a letter of offer specifying the coverage and premium. Upon receipt of the premium, EDC issues a Letter of Instruction to Issue Bond to the fronting surety, confirming full reinsurance coverage. The fronting surety will issue the corresponding surety bond to you for delivery to your buyer.
For companies with existing bonding lines, EDC provides risk-sharing reinsurance capacity, working directly with surety companies to finalize agreements.
Qualification Criteria
In assessing applications, EDC considers multiple factors, including:
- a company’s managerial, technical and financial capabilities
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acceptable contract terms
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acceptable bonding instruments
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the current conditions and economic outlook in the customer’s country, and the foreign customer's profile
- acceptable Canadian exports of goods and services, or other significant benefits to Canada
Note: EDC does not issue bonds directly; we provide risk-sharing capacity to surety companies licensed to operate in your customer’s country.
Cost
Pricing is based on a number of variables, including: liability amount, duration of cover, exporter risks and contract-specific risk factors.
More information
Call 1-866-283-2957, weekdays between 8 a.m. to 6 p.m. EST.
Request more information
Coverage for Contract Bonds (PDF Format)
Checklist for EDC Bonding Support (PDF Format)
Application and Indemnity for Contract Frustration Insurance and Bonding Products (PDF Format)
Important Information
The foregoing information describes, in general, surety reinsurance available at EDC and is not a commitment to provide such reinsurance. Only the policy document provides the full extent, nature and specific characteristics of the coverage.
