Public Official Bonds Broker
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All About Public Official Bonds
You’re a professional insurance agent, ready for anything when it comes to your clients’ needs. Well, almost anything — when it comes to specialized surety coverage like public official bonds, you might need a little professional help. That’s why BondExchange has you covered. Here’s what you might need to know about public official bonds, when and why your clients need them, and anything else necessary to keep your clients protected.
What is a Public Official Bond?
First things first: the definition of a public official bond. Public official bonds are a type of surety bond that protects the government and its citizens from dishonest or negligent acts by someone that holds a public office, especially when it comes to those officials that deal with money or privileged information. The purpose behind a public official bond is to ensure the public will be reimbursed if the official does not faithfully perform the duties of the office.
A number of different public official bond types are available, depending on the requirements of specific state or local laws. It’s most common to require public official bonds for those serving as court clerks, commissioners, notary publics, deputies, sheriffs, other law enforcement offices, tax collection personnel, city managers, treasurers, judges, mayors, or other types of city officials.
How Do Public Official Bonds Work?
Public official bonds pay a claim if the official creates a financial loss to the government. Generally, the public official must faithfully perform the duties of the office, handle public funds appropriately, and turn over all property and records when they leave the office. In the event that a public official commits any of these violations, injured parties can claim for damages against a public official bond up to the value of the bond.
What’s the Cost of a Public Official Bond?
There are a number of factors that go into the cost of a public official bond. In many cases, the state or local government itself pays for the bond, as this provides a measure of protection against the government being held directly responsible for the actions of a public official. However, it’s noteworthy that while bonds may be paid by the state, the bonded public official often needs to compensate the issuing surety if claims are made against their bond. To wit, the public official bond indemnifies the government, but the official then indemnifies the surety.
When it comes to the actual cost paid by the state or local government, the public official’s position, the associated risk, and the official’s personal credit score all are taken into account. The total amount paid on a bond in order to purchase coverage is typically between 1 percent and 4 percent of its total value, based on those factors.
How to Get a Public Official Bond
Public official bonds, like other surety bonds, are obtained through insurance companies and their agents that specialize in providing surety bond insurance. Agents approach public official bond companies and source quotes on behalf of government and institutional clients before presenting them to their clients for review. BondExchange represents over 30 different surety companies to provide public official bonds for almost any type of public official position or customer credit profile.
The process of sourcing a public official bond can be challenging for insurance agents that don’t specialize in surety. Understanding how these bonds work and the underwriting process enables agents to provide valuable guidance to their governmental clients, but it is also beneficial for agents to find skilled partners in sourcing any other related bond.
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Why Partner with BondExchange for Public Official Bonds?
BondExchange has been working with insurance agents for over 40 years, building functional and fast technologies and specialty programs designed to make our agents work more efficiently. We know that most insurance agents do not focus on surety bonds such as public official bonds, so we’ve created a platform that makes the process simple, fast, and profitable.
Simplifying the Bond Process with the Help of Straightforward Tools
Thanks to the straightforward tools we’ve designed, BondExchange has simplified the public official bond process. Agents find it easy to quote bonds quickly, deliver those quotes electronically, and issue bonds online. Our online application uses language that’s easy to understand for both agents and their end customers. Our system generates quotes instantly after taking just seconds to shop over 30 markets, offering online bond purchases with zero paperwork.
You Deserve Customized, Expert Service
Our agents always come first here at BondExchange. Your name and brand is featured prominently, reinforcing your expertise and professional image with your clients at all times. With our professional underwriting staff, you’re always just a step away from the answers you need, whether it’s by phone, our website chat, or email. Our friendly, knowledgeable experts stand ready to help you through the bonding process.
Single Entry-Point Solution for Insurance Agents
BondExchange keeps it simple when it comes to providing access to hundreds of different types of bonds and rates from more than 30 different carriers. We offer a single entry-point to shop the entire surety market instantly online, putting your profitability and professional reputation first.