Foire aux questions

Understanding the bond claim process

When a claim is made on your surety bond, it's crucial to understand the process and its implications. Although claims are rare when projects are well managed, it's essential to be prepared for this eventuality.

The process begins when the bond beneficiary (usually the client or owner) files a claim with the surety company. The surety company then undertakes a thorough investigation to verify the claim's validity. This often involves document gathering, interviews with the parties concerned, and a detailed analysis of the claim's circumstances.

If the claim is deemed valid, the surety company proceeds with payment to the beneficiary in accordance with the terms of the bond. This payment covers any loss or damage the beneficiary suffers due to non-compliance with contractual obligations.

It is crucial to understand that this payment is not a simple indemnity. As the bondholder, you are responsible for repaying this sum to the surety company. This repayment obligation is a fundamental feature that distinguishes surety bonds from insurance.

At Covalen, we believe in a proactive approach to minimizing the risk of claims. We work closely with our customers to identify potential problems before they escalate. In the event of a claim, our team of experts guides you through the process, seeking solutions to resolve conflicts and protect your interests. We aim to manage claims efficiently, preserve your relationship with the beneficiary, and maintain your bonding capacity for future projects.

Insurance vs. Surety: Understanding the essential nuances

Financial protection takes many forms in the business world. Insurance and surety bonds are two often confused but fundamentally distinct financial tools. Understanding their differences is crucial to choosing the proper protection for your business.

Surety acts as a performance bond. It assures your customer or beneficiary that you will fulfill your contractual obligations. In the event of default, the surety company indemnifies the beneficiary, but you must repay this sum. It's a three-way relationship involving you, the beneficiary and the surety company.

On the other hand, insurance protects your business directly against specific risks. You pay premiums to transfer the financial risk to the insurer. In the event of a covered loss, the insurer indemnifies you without waiting for reimbursement. It's generally a two-way relationship between you and the insurer.

The key distinction lies in the protection. Bonding guarantees your performance, while insurance protects you against loss. In the event of a claim, you reimburse the surety company but not the insurer.

At Covalen, we recognize the importance of both tools in managing your company's risks. Our team of experts is here to guide you in choosing the optimal combination of bonding and insurance. We analyze your needs to offer comprehensive, tailor-made protection, ensuring your business's financial security and growth.

Oui, nous avons des solutions adaptées à cette situation.

Nos courtiers spécialisés peuvent vous aider à trouver des options d'assurance alternatives.

Taking regular safety training, maintaining a good flying record, and choosing the right deductible can help reduce your premiums.

“All risks in flight and on the ground” coverage offers the most comprehensive protection, covering your aircraft in flight and on the ground.

Yes, liability insurance is legally required for all aircraft flying in Canada.

It generally covers damage to your motorcycle (collision, theft, vandalism) and third-party liability. Check the specific details of the policy.

Generally, yes, for Canada and the United States. For other destinations, check with your insurer and consider extending your coverage.

More experience and an impeccable driving record can reduce your premiums. Novice drivers generally pay more.

Yes, but some insurers offer partial winter suspension options. Check with your insurer.

Contact the police and your insurer immediately. Provide all the necessary details and documents to facilitate the claim.