Public Official Surety Bond
Public official bonds guarantee that certain officials perform their duties as required by local and state laws and regulations. As employees of state or government agencies, public officials are licensed to serve others. Consequently the government enforces rules and regulations that require many of their employees to be bonded to help hold them financially accountable for their decisions and actions.
Why do you need a public official bond?
Public officials are usually required to secure this surety bond in order to hold a public office, however some public entities do not require public officials to be bonded. Even so, many public officials still choose to bond themselves for additional protection even without the bonding requirement.
Professions that typically require a public official bond include, but are not limited to:
- court clerks
- judges
- mayors
- sheriffs
- tax collectors
- treasurers
- township managers or directors
Local governments that require public officials to be bonded do so to hold their officials financially accountable for completing duties in an appropriate manner.
How do you get this surety bond?
SuretyBonds.com issues these bonds to guarantee that public officials handle money and other assigned responsibilities with integrity. Oftentimes these bonds also guarantee that officials perform their duties faithfully. In some cases coverage can be provided for an entire group of employees under a public employees blanket bond.
Public official surety bonds can be purchased wherever bonds are sold, but companies that specialize in the sale and distribution of all types of bonds can often provide additional information and support about the process. Bonds can sometimes be purchased through insurance companies, but keep in mind surety bonds are a form of credit, not insurance.
How much does this bond cost?
Backing the honest and faithful performance of public officials with a surety bond generally protects taxpayers, so the amount of the bond should be in an amount that directly corresponds to their interests. Some states require these bonds be in the amount of 100% of all public funds the official manages, particularly tax collectors. The bond’s duration generally coincides with the official’s term in office.
The cost of these bonds varies. If you qualify for standard credit markets you could expect to pay between 1-4%. If you need a bad credit, non-standard, surety bond market your annual premium could be anywhere between 5%-15%.
