Protecting The Public From Misappropriation of Funds or Dereliction of Duty
Many government positions involving the management and allocation of public funds require employees to obtain a public official surety bond before being sworn into office. These bonds are designed to ensure officials act in the public’s interest while in office and to provide financial protection in the event of misconduct, negligence, or failure to perform official duties.
King Risk Partners makes it easy for public officials to get bonded before taking office. Don’t let bond requirements slow you down; reach out to one of our surety bond agents today!
What Is A Public Official Surety Bond?
A public official bond is a type of surety bond for public officials that protects against losses caused by misconduct, negligence, or failure to faithfully perform their duties during their term in office. Actions covered by this kind of bond typically include misappropriation of public funds or failure to perform required official duties. In this case, the employer (typically the government) can submit a claim against the public official bond to recover their losses.
How Public Official Surety Bonds Work
In order to secure a public official surety bond, the applicant must pay a premium (typically amounting between 1% and 5%) of the total bond amount. In many cases, the employer pays this premium on behalf of the public official.
The bond amount is the sole responsibility of the employee or public official, regardless of who pays the bond premium. If a validated claim is made against the bond, King Risk Partners will pay the claim up to the full bond amount. The principal is ultimately responsible for reimbursing King Risk Partners for any amount paid out on their behalf.
Frequently Asked Questions
The parties to a public official surety bond include the following:
Principal: the public official or government employee required to obtain the bond.
Obligee: the government entity requiring the bond and insured by it.
Surety: the company that backs the bond; in this case, King Risk Partners.
Typically the state pays for the bond premium on behalf of the public official. Regardless, the principal is responsible for the bond amount and must reimburse the surety agency for any valid claim paid under the bond.
In some cases, yes. Some public official surety bonds contain clauses that allow claims to be submitted after-the-fact on behalf of wrongful acts committed while the bond was active. Contact King Risk Partners for more information.
Yes. Surety bond claims are typically reviewed and investigated before payment is made. If a claim is disputed, the principal may have the opportunity to challenge the claim, raise defenses, or resolve the matter through the appropriate legal process.
Yes. While credit is an important factor in securing a bond with low premiums, it is still possible to get bonded with poor credit. Here at King Risk Partners, we have experience helping applicants across a range of financial backgrounds get bonded at competitive rates.