Many government positions, and especially those with fiduciary duties, will require posting of a public official bond before officials will be allowed to be sw0rn in. Many federal, state and local positions compel placement of this class of surety bond. This type of bond is one of the oldest surety requirements in the United States. In 1792, Congress passed a law creating the office of Paymaster General and made the taking of office contingent on the positing of a $20,000 bond. Tax collectors, treasurers, town supervisors, county commissioners, judges, clerks of court and alcoholic beverage control board members are examples of commonly bonded positions. A public official bond is a sort of performance bond. These bonds provide protection to the government division on behalf the citizens and residents affected by the official's acts. Unless bonds are required from an official's deputies and subordinates, the official's bond also covers those parties. Generally there are three types of acts covered by a public official surety bond.
Public official bonds generally run concurrently with the official's term of office. These obligations often contain a cancellation provision however cancellation for cause usually occurs where the official has committed some act that has necessitated a claim against the bond. This class of business is historically very stable and low loss however large bond penalties require a surety underwriter to consider carefully the wording of the obligation, the underlying statutory responsibilities placed on the public official, his or her education, training and experience for the position and where money handling duties are imposed, that the applicant has demonstrated responsible, adult management of his or her personal financial affairs.
National surety leader, Surety One, Inc. offers this class of bond to all elected and appointed officials at all levels of government, school boards and public/private positions. Our special underwriting strategy permits us to offer public official surety bonds to applicants even where he or she may have damaged credit.