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Public Official Bond and its types

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A public official bond is a type of surety bond that allows a number of officials to show that they can be trusted for their services. Public official's bonds are required by law, because many people will need to work with money and other sensitive information. It ensures specific duties or obligations are fulfilled as per law. This bond comes with a set limit called penalty. The surety is liable only for this amount of the limit.

Similar to other surety bonds, public official bonds function as legal contracts that bind three parties together.

  1. Principal: The official who purchases the bond is the principal party.
  2. Obligee: The county, city or state that requires the official to purchase the bond is the obligee.
  3. Surety: The agency that provides the bond for the principal is the surety. It works with the principal throughout the bonding process to ensure the obligation stated in the bond form is upheld.

Public Official Bonds Florida guarantee the individual is trustworthy and honest; these ensure that they will devotedly perform the duty of their allotted office. This protects taxpayers against any potential fraud. Official positions that need to obtain a public official bond at the state, county or city level can include (but are not limited to):

  • Judges
  • Court clerks
  • Mayors
  • Tax collectors
  • Community directors
  • Constables
  • Homeowner association leaders
  • Treasurers & subordinates
  • Tax collectors & subordinates
  • Town supervisors
  • Deputies

Importance:

You are required to obtain a Public Official bond Florida to protect the public. If you do not follow the central or state regulations while in public office, a claim can be filed on your bond. For example, a county treasurer may have lost funds through a failure of a bank which he thought to be sound. If the treasurer did not obtain proper depository security, he could be held liable for all the compensation. The county treasurer could easily confirm that he did not act dishonestly.

 Types of Public Official Bonds:

  1. Fidelity Bond: Fidelity bonds are a type of insurance plan designed to safeguard an organization against losses caused due to fraudulent actions by a specified individual or a group of individuals. These are form of business insurance which covers the dishonest activities performed by its employees. These are not tradable securities. These ensure financial stability in the business as the reimbursement for the act is covered by the insurance company.
  2. Faithful Performance Bond: Fidelity bonds generally protect against dishonest acts of the principal. A faithful performance surety bond goes beyond this to protect the insured party against the principal not faithfully performing their duties as prescribed by law, the constitution or the bylaws of the insured party. In other words, the coverage is much broader than a standard notary bond.

We take pride on providing efficient services for our low-cost bonds. You do not have to worry about waiting for long periods before starting a new job in the municipal sector. To get a best quote for Public Official Bonds Florida, reach us now.