Surety
What Is Labour & Material Payment Bond?
A labour and material payment bond guarantees that a contractor will pay its subcontractors, workers, and suppliers on a project. It protects those parties from non-payment and helps keep the project free of liens, and is usually issued alongside a performance bond.
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Reviewed by Roughley Insurance Brokers Ltd. — licensed Ontario insurance brokers since 1945. Last updated May 30, 2026. ← Back to the glossary