What is a public official bond?
Public official bonds are legally binding agreements between three parties: public officials, a state government agency, and a surety company.
The government agency is the Obligee and establishes the obligations that the appointed official (the Principal) must follow. The surety (also called bonding company) issues the bond guaranteeing the performance of the official.
Why do you need a public official bond?
Public official bonds are required to ensure the faithful performance of public officials (judges, sheriffs, tax collectors, court clerks). When the surety company issues the bond, they provide a guarantee that the agency will receive payment for financial losses resulting from a violation of the statutes and regulations relating to the official’s appointment.
If the public official fails to meet the obligations set out by the government agency, the surety will pay out damages up to the bond amount. The official is liable for the losses and is legally required to reimburse the surety company for any damages paid under the bond.
How much does a public official bond cost?
Public official surety bond costs vary depending on the total bond amount and the premium rate. The state agency sets the 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 public official bonds usually cost 0.5% of the total bond amount. Most public official bonds do not require a credit check––meaning that bad credit will not result in higher bond premiums.
Below are the lowest premiums EZ Surety has issued for public official bonds in popular states.
- EZ Surety has issued public official bonds in the State of Georgia for premiums as low as $175.
- EZ Surety has issued public official bonds in the State of Massachusetts for premiums as low as $100.
- EZ Surety has issued public official bonds in the State of Virginia for premiums as low as $250.