Court bonds are a type of surety bond that may be required during legal proceedings. There are two primary types of court bonds: judicial bonds and probate bonds.
Judicial bonds are required in certain proceedings to limit financial losses that could result from the court ruling. Examples of judicial bonds include:
Probate Bonds (also called fiduciary bonds) are required when a fiduciary is appointed to manage an estate. These bonds ensure that the fiduciary fulfills their court-appointed duties and that the interests of the beneficiary are safeguarded.
Courts often require parties in a court proceeding to post court bonds to ensure they complete a court-appointed task or to reduce the risk of financial loss following a court ruling. When the surety company issues the bond, they provide the court a guarantee that a damaged party will receive payment for financial losses resulting from the court ruling or a violation of the court order. The surety will pay out any damages up to the bond amount. The party who posted the bond is ultimately liable for the losses and is legally required to reimburse the surety company for any damages paid under the bond.
Court surety bond costs vary depending on the total bond amount and the premium rate. The court sets the required bond amount and the surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium.
Premium rates for probate bonds typically cost between 0.5% and 2% of the total bond amount. Probate bonds with amounts over $25,000 require credit checks. Civil court bonds do not normally require credit checks but the surety company ultimately decides how to underwrite the bond.
During the application process, the surety company evaluates your financial strength and industry experience. For court bonds requiring credit checks, applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a court bond. EZ Surety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for court surety bonds in popular states.