Bonds
Collaborative insurance solutions.
Types of Bonds:
Administrator
Type of bond that is utilized in managing the distribution of an estate. The bond is actually associated with the executor or administrator of that estate, and helps to protect the assets of the estate in the event that the administrator engages in activities that are unethical or otherwise harmful. In order for the bond to cover the resulting financial losses, the nature of the activities must meet the qualifications specified in the terms and conditions of the bond. Also known as Estate Bond, Executor Bond, Probate Bond or Fiduciary Bond.
Executor
Type of bond that protects a deceased and beneficiaries from fraud or embezzlement of the estate or assets. For instance if the executor of the will takes the inheritance and doesn't pay the creditors, they will be able to recover these amounts from the bonding company. Also known as Administrator bond, Estate Bond, Probate bond or Fiduciary Bond.
Conservator
Type of bond that serves to induce the Conservator of a minor, incapacitated individual, or deceased person to handle the affairs of the Conservatee according to law. This applies more regularly in cases of the sale of real estate and other financial affairs. Also known as Conservatorship Surety Bond, Fiduciary Surety Bond, Court Surety Bond or a Probate Surety Bond.
Notary (with and without E & O)
Type of bond that helps to protect the public from the notary's action or inaction through an agreement to pay the obligee in an amount up to the bond coverage amount in the event of a harmful act by the notary. May be purchased with or without Errors & Omissions insurance coverage.
Estate
An estate bond is a monetary amount rendered in order to ensure that estate proceedings are processed both legally as well as honestly. Some states require the executor of an estate to post an estate bond when the estate holder dies, as part of the distribution process. Also known as Executor Bond, Fiduciary Bond, Administrator Bond or Probate Bond.
ERISA/Fidelity
Type of bond that provides first party coverage and pays the covered plan for any loss from theft of assets. The ERISA bond must equal 10 percent of the funds handled by a trustee or fiduciary with a minimum limit of $1,000 per plan and a maximum limit of $500,000 per plan. Plans holding employer securities are required to carry a maximum limit of $1,000,000.
Replevin
Type of bond that is given by a plaintiff in a replevin law suit. It will cover losses to the defendant (or court officer who seizes the property in the defendant's possession) in the event that the plaintiff loses the case. The bond ensures the safekeeping of the property until the court determines if the property should be given back to the defendant or not.
Guardian(ship)
Type of bond that assures a court that a person designated to serve as a guardian will perform his or her duties as required by law. It is a guarantee of performance. Some jurisdictions refer to this type of bond as a custodian bond. Certain situations require courts to appoint a guardian to manage the finances of a person who cannot handle his or her own finances, such as a minor child, an elderly person or a disabled person. This bond protects the finances or assets of the person who is the subject of the guardianship. Also known as Custodian Bond.
Injunction
Type of a judicial bond which is posted when one party institutes an injunction on another party. The injunction bond seeks to protect the defendant in the case of wrongful injunction. The defendant can claim on the bond for damages should the issued injunction have no merit.
Appeal
Type of bond that is a guarantee of payment of a court judgment. It is used in small claims court, for example, to assure the payment of the judgment by the losing party, while that party appeals the court's decision. Requiring an appeal bond discourages losing parties from appealing just to avoid paying the judgment. Also known as Supersedeas bond.
Lost Instrument
Type of bond that indemnifies a corporation, the shareholder and the Transfer Agent against any and all claims arising from the replacement by the Transfer Agent of lost, stolen, or destroyed certificates. This bond guarantees that if the original lost document is found, it will be returned to the surety company or obligee for proper disposal and that the issuer of the replacement security will not suffer an economic loss.
Probate
Type of bond that is required by law to guarantee an honest accounting and faithful performance of the duties of the appointee and compliance with the orders of the probate court. A person, bank or trust company is normally appointed by a court order to administer the estate or property of another person who is unable to manage his or her own affairs. Also known as Fiduciary bond.
Contractor
Type of bond that is required for the issuance of an active license, reactivation of a license, and for the maintenance of an actively renewed license (varies by locale). The bond is filed for the benefit of consumers who may be damaged as a result of defective construction/faulty services or other license law violations.
Beverage Permit
Type of bond that guarantee payment of taxes or fees imposed by state or local law for the sale, manufacture or warehousing of liquor and other alcoholic beverages. It is a financial guarantee that protects the obligee, which in this case is the government entity that requires the bond, from falsified records of sale, or an inability to pay requisite taxes on previous sales. Also known as liquor license bond.
License/Permit
Type of bond that is required of individuals or businesses that coincide with the license or permit they are about to obtain from either local or state government entities. These bonds guarantee the principal will remain in compliance with the regulations and ordinances related to the license or permit and hold the obligee harmless from any incurred damages.
Adjuster
Type of bond that guarantees public adjusters will follow the regulations set by their state. The bond is needed to obtain a public adjuster license
Public Official
Type of bond that guarantees a public official will perform the duties of office faithfully and honestly and, in most cases, a surety bond is required in order to hold office. While these duties may vary by position and applicable law, a public official is obligated to act in the public’s best interest at all times and will be held personally accountable, with few exceptions, for the duties and responsibilities of that position.
Fiduciary
Type of bond that is required by law to guarantee an honest accounting and faithful performance of the duties of the appointee and compliance with the plan rules. A fiduciary is a person, bank or trust company appointed by a court order to administer the benefit plan, estate or property of another person who is unable to manage his or her own affairs. Occasionally referred to as a probate bond.
Escrow Security Bond
More industry specific, this type of bond protects title agents and escrow agents from financial loss due to fraudulent activities, including theft of escrow funds. While title agents may have crime coverage through other forms of insurance policies, many times it will not protect escrow funds from theft or meet lenders’ needs including owners and officers coverage and loss payee provisions.
Fidelity Bond
A more general form of insurance that will cover the policy holder for financial losses due to fraudulent activities by others. This bond is generally used to protect a business against employee theft.
Surety Bond
This type of bond is used to protect an obligation or promise to pay from one party, the obligee, to a second party, such as a contract holder. The bond will protect the obligee if the second party fails to meet the obligation.
Other
Please contact us should you require a bond that is not listed above as this list is not all-inclusive.
