Landscape Contractor Bonds in Canada: What They Are & Why They Matter

Landscape contractor bonds guarantee clients are protected if landscaping contractors fail to meet their contractual obligations. In Canada, these bonds are often required for municipal and large-scale projects, helping contractors win bids, build trust, and complement landscaping liability insurance.

Landscape liability insurance protects Canadian contractors, but what protects their clients? That’s where landscape contractor bonds come in. These financial guarantees ensure that clients are compensated if a contractor fails to meet their contractual obligations, whether through incomplete work, delays, or non-compliance with project specifications. 

For landscaping contractors, securing a bond is often key to winning bids, qualifying for municipal projects, and building lasting client trust. When paired with comprehensive liability insurance, a contractor bond also strengthens your reputation and gives you the confidence to take on larger, more complex projects.

Not sure whether your next landscaping job requires a bond? This guide breaks down how landscape contract bonds work, why they matter in Canada, and how to secure one through a commercial insurance broker in Ontario like KASE Insurance.

What Is a Landscape Contractor Bond? 

A landscape contractor bond is a type of surety bond that ensures the contractor will complete a project according to the terms and conditions laid out in a contract. It acts as a financial guarantee for the client, not the contractor. 

If the landscaper fails to deliver as agreed, whether due to delays, abandonment, or failure to pay subcontractors, the bond can be used to compensate the client or cover damages.

A typical bond agreement involves three parties:

  • Principal: The landscape contractor
  • Obligee: The client (e.g., a municipality or property developer)
  • Surety: The company (backed by a broker like KASE) that guarantees the bond

Unlike insurance, which protects your business, bonds protect the client from financial losses if you can’t deliver.

Why Are Landscape Contractor Bonds Important? 

Landscaping projects often involve large budgets, phased timelines, and strict deliverables. A bond gives your client peace of mind that the work will be completed and paid for, or they’ll be financially protected.

Why it matters:

  • Required for public contracts and large-scale landscaping projects
  • Enhances your professional reputation
  • Shows clients you’re financially responsible and credible
  • Can give you a competitive edge in bidding situations

Did you know? Many cities and municipalities in Canada, like Ontario, require landscape contractor bonds for public green space contracts.

Who Needs a Landscape Contractor Bond?

Not all landscapers may find a bond necessary, but you may need it if:

  • You’re bidding on municipal, provincial, or federal landscaping contracts
  • You work on commercial or industrial developments
  • You subcontract services for property management firms or HOAs
  • You’re working on high-value residential installations with formal contracts

Even if it’s not legally required, having a bond in place can build trust and protect your reputation. It improves your chances of winning competitive bids in the future. 

How Does a Landscape Contractor Bond Work? 

A landscape contractor bond takes effect when a contractor does not finish a project. Here’s an example of how it works:

  1. A landscaping company bids on a $100,000 municipal landscaping project.
  2. The city requires a performance bond and a payment bond.
  3. KASE Insurance helps the contractor secure a bond for 100% of the contract value.
  4. The project begins, but halfway through, the contractor abandons the job.
  5. The city files a claim. The surety steps in to compensate the city and may pursue repayment from the contractor.

The contractor remains responsible for any covered losses paid out by the surety. That’s why having the right bond and fulfilling your obligations are so important.

A landscape contractor laying bricks during a project

Image source: Canva

Types of Bonds for Landscape Contractors 

Landscaping contractors can get from two types of bonds: performance and payment bonds. 

Performance Bonds 

A performance bond guarantees that the landscaping work will be completed according to the contract’s terms and specifications. It offers project owners financial security if the agreed project doesn’t come to fruition.

Payment Bonds

A payment bond ensures that subcontractors, labourers, and suppliers will be paid, protecting everyone involved in the project. It holds the landscaping contractors accountable for landscaping services rendered in accordance with the contract.

What Do Landscape Contractor Bonds Cover?

Bonds do not cover your own financial losses or damages; they’re there to protect your client. Coverage may include:

  • Incomplete or defective work
  • Missed deadlines or abandoned projects
  • Unpaid subcontractors or suppliers

Landscaping Liability Insurance vs. Contractor Bond 

Many contractors confuse bonds with landscaping liability insurance. They’re both essential, but they serve different purposes and have varying insurance coverages:

Feature

Landscape Contractor Bond

Landscaping Liability Insurance

Protects

Your client

Your business

Covers

  • Contractual failure
  • Unpaid subs and suppliers
  • Property damage
  • Third-party bodily injuries
  • Legal fees from liability lawsuits

Required by

Project owners or governments

Most provinces, clients

Commercial General Liability Insurance for Landscapers 

Commercial general liability insurance is a must for any landscaper. It protects you if your crew accidentally damages a client’s property, someone gets injured on-site, or a client files a liability lawsuit for negligence. 

A landscaping insurance policy is often bundled with complementary coverages for broader protection, including:

  • Tools and Equipment Insurance: Covers owned, leased, or rented landscaping tools and equipment against theft, damage, or loss, on or off the job site.
  • Commercial Auto Insurance: Covers repair costs and medical expenses in case of accidents involving company vehicles.
  • Commercial Property Insurance: Protects your offices, warehouses, or storage facilities against perils such as fire, flooding, earthquakes, or other natural disasters.
  • Pollution liability insurance: Safeguards landscaping contractors from claims related to environmental damage, including pesticide and chemical application incidents.

Learn more: Surety Bond vs. Insurance: What's the Difference?

How Much Does Landscaping Insurance Cost? 

Basic landscaping liability policies in Canada typically range from $650 to $2,500/year, depending on your risk profile and business details. Key factors that influence your premium include:

  • Business size and location
  • Type of services offered (e.g., snow removal generally carries higher risk than basic lawn care)
  • Number of employees, tools, and vehicles
  • Claims history and insurance coverage limits

How Much Do Bond Premiums Cost? 

As for landscape contractor bonds, premiums generally range from 1% to 3% of the total bond amount. It considers the following factors:

  • Your credit score and financial stability
  • Years in business and experience
  • Contract value
  • Past claims or defaults

For example, a $50,000 landscaping project may require a bond that costs between $500 and $1,500.

Learn more: Understanding Surety Bond Cost

Tip: Compare rates across top insurers and bundle your coverage for better value and protection. Our experts at KASE Insurance can help you structure an insurance and bonding program tailored to your business.

A contractor and a client shaking hands over blueprints and construction tools

Image source: Canva

How to Obtain a Landscape Contractor Bond 

Securing a landscaping contractor bond in Canada involves researching the requirements, selecting a provider, and understanding the associated premiums and contract terms.

Step 1: Research Bond Requirements 

Before starting your application, confirm the specific bonding requirements for your project. Check the client’s contract, request-for-proposal (RFP) guidelines, or municipal regulations to determine:

  • Whether bonding is required for the job
  • The type of bond required
  • Bond amount and duration

Knowing these details allows you to proceed with clarity so you can avoid delays and align your application with the project’s expectations.

Step 2: Choose a Bond Provider 

Partner with licensed landscaping insurance brokers, like KASE Insurance, who specializes in surety bonds for contractors. A knowledgeable broker can:

  • Match you with top-rated Canadian surety markets
  • Navigate underwriting requirements efficiently
  • Structure bonding programs that grow with your business

With an experienced insurance company as your bond partner, you meet current project requirements while securing your long-term operations and future contracts.

Learn more: What to Look For in a Surety Bond Broker

Step 3: Apply for the Bond 

Once you’ve chosen a bond or insurance provider, you can now complete your formal application. You’ll usually need to provide:

  • Business license or incorporation
  • Financial statements or credit score
  • Details of the project or bid (including contract value and timelines)
  • Evidence of relevant experience or work history

Make sure to provide complete and accurate information to speed up the approval process. It’ll also strengthen your eligibility for larger, more complex projects in the future.

Step 4: Understand Premiums & Terms 

After underwriting, your bond will be issued for a set amount and duration. Premiums are typically a small percentage of the bond and will depend on your financial strength, experience, and project size. 

Once it’s written, make sure you understand:

  • Renewal terms (annual vs. per project)
  • Your indemnity obligations in the event of a claim
  • How claims are handled and resolved

At KASE Insurance, we help landscaping contractors get bonded quickly and understand every financial and legal implication in their bond, so you can secure clients trust and bid with confidence.

Key Takeaways 

  • Landscape contractor bonds protect clients, not contractors, by guaranteeing project completion and payment.
  • Required for many municipal and commercial landscaping contracts across Canada, especially public green space projects.
  • Bonds and insurance serve different purposes: bonds protect clients; liability insurance protects your business.
  • Common bond types for landscapers include performance and payment bonds.
  • Bond costs typically range from 1% to 3% of the contract value, depending on credit, business history, and job size.
  • Partnering with a specialty broker like KASE helps you meet bonding requirements, secure competitive rates, and scale with confidence.
  • Carrying both bonding and landscaping business insurance strengthens bids, protects your reputation, and builds client trust.

FAQs About Landscape Contractor Bonds 

A landscape contractor bond protects clients from financial loss if a contractor fails to complete work or pay subcontractors. If a contractor fails to complete a project, the surety company will compensate the client with the agreed amount, as paid for by the contractor.

Most bonds last for the duration of a project or 12 months. Renewal terms depend on the bond type and client requirements. It can be renewed annually or on a project-by-project basis.

The surety investigates the claim and, if valid, compensates the client. The contractor is then responsible for repaying the surety.

They’re relatively affordable, typically ranging from 1% to 3% of the contract value. KASE Insurance helps landscapers secure competitive rates.

Yes. Insurance protects your business from risks and liabilities, while bonding protects your client in case of non-completion. Most professional landscapers carry both to earn client trust, protect their reputation, and shield themselves from unexpected expenses.

Secure Your Landscaping Business with KASE Insurance

A landscaping contractor bond and liability insurance go hand in hand in safeguarding your business and ensuring continuous operations. If you’re a landscaper bidding on public or commercial contracts, both are non-negotiables. 

Earn clients’ trust, secure projects, and protect your bottom line with a comprehensive surety bond and insurance for landscaping from KASE Insurance.

As an award-winning brokerage in Ontario, KASE Insurance helps Canadian landscapers get bonded quickly. Secure enhanced protection and competitive pricing with a bundled liability insurance coverage tailored to your business needs. 

Request a consultation to speak with a KASE bonding advisor or get a free quote today.