Understanding Public Official Bonds
How do I know if I need a public official bond?
Many states require public officials to maintain a surety bond. Usually, each state will provide the icensee with specific requirements when they initially grant the license. Many states have these requirements listed on their own websites. Please see the “State Bond Regulations” page on this website to help you find the current requirements. If you can’t find the answers you’re looking for, contact one of our customer service representatives to help you complete your application.
What is the purpose of a public official bond?
A public official bond guarantees the honesty and faithful performance of a public official’s duties as prescribed by law or regulation, including the honest account of all monies entrusted to the official according to the law. Public Official bonds are generally for the protection of the taxpayers and the penalty or amount of the bond should be adequate to protect these interests.
These bonds assure the recovery of fines, fees, and or expenses, levied by state regulators for non-compliance with state regulations and ordinances. These bonds also assure recovery of losses incurred, that result from a public official�s non-compliance with these regulations.
Which are the most common professions that require public official bonds?
The most common professions are as follows:
- Agents for Sale of Hunting, Fishing & Trapping Licenses, Auto Tags, etc.
- Commissioners of Deeds
- Court Clerks
- Dog Catchers
- Federal, State and City Officials
- Individual Public Officials
- Notaries Public
- Officers of the Law
- Public Official Name Schedule
- Public Official Position Schedule
- Secretary of State, City, etc.
- Tax Collectors
- Tax Collectors & Treasurers (Dual Position)
- Township Managers/Directors
PublicOfficialBonds provides to all of the above listed professions, as well as numerous others. Inquire today or simply complete an online application and one of our experienced surety specialists will walk you through the process.
How is a public official bond different than an insurance policy?
Unlike an insurance policy, the bond does not step in and pay losses for you. The bond guarantees that you will be able to pay any losses up to the face amount of the bond. The bond will only pay in your stead in the event that you are financially unable to meet your obligations.
My state allows me to post a letter of credit instead of a bond. What are the advantages of having a surety bond?
Obtaining a surety bond is generally the preferable method for meeting the state�s requirement for a financial guarantee of your performance. The surety company requires that those they bond have the financial resources to meet any the obligations that the bond guarantees, but it allows the licensee to have the unencumbered use of those resources as they engage in their business.