Securing Bonds for Public Entities

While bonds are generally associated with the construction industry these are not the only professionals in need of securing bonds for the purpose of funding projects. Surety and other bonds provide all types of professionals with bonds including for public officials.

A public official is accountable to the public and therefore, because he or she oversees budgets or handles financial matters and makes important decisions for a city or other public entity, they should be bonded. State or local statutes as well as public charters may require that a public official be required by law to furnish a surety bond in order to perform his or her job.

 

The bonding process

 

Bonds can be acquired through Daniels Insurance agency, which works with surety companies. Daniels represent large national bonding companies as well as smaller, regional firms. Bonds are necessary in order to provide public entities with any required options and may be customized to meet their specific needs. A public official or surety bond provides a financial guarantee against loss and that the official duties of an office will be faithfully performed.

 

The duties of a public official are laid out in the state statutes, city statutes or public charters. Should a public official fail to meet the obligations of their job duties, and a loss ensues, the public official responsible is required to pay back the public for any loss, regardless of how the loss occurred. The public official bond does not pay losses in place of the public official. The bond does guarantee that, if the public official is unable to financially meet their obligations from any losses incurred, payment will be made up to the face value of the bond.

 

Through Daniels Insurance, or a participating surety company, you can also purchase judicial bonds and probate bonds, sometimes required by parties seeking court remedies as a result of litigation or as a form of guarantee that those entrusted with the care of the property of others will handle this responsibility faithfully.

 

Frank