Small Business Bonds

TheEmployee Retirement Income Security Act of 1974 (ERISA) requires that every fiduciary of an employee benefit plan and every person who handles funds of such plan shall be bonded in an amount equal to 10% of the funds handled with a maximum Bond Limit of $1,000,000. Plans above $500,000 require an application and underwriter review. A separate bond is executed for each plan.

Most Public Official bonds are required by law and are generally conditioned to guarantee a public officer's faithful performance of duty. The Public Official Bond is for the protection of the taxpayers and the penalty or amount of the bond should be adequate to protect their interest. There is no overall rule determining the amount of each Public Official bond. Some states require bonds in an amount of 100% of all public funds handled by officials, especially tax collectors. The term of an Official Bond is generally coextensive with the Official's term of office and the bond usually remains in force throughout the term, or until a successor is elected or appointed and qualifies. Examples of bonds we can provide include but are not limited to the following:

• Contract Postal Unit bonds
• Court Clerks
• Dog Catchers
• Hunting & Fishing bond
• Individual Public Official
• Judges
• Mayors
• Notary Public bonds
• Officers of the Law
• Public Official Name Schedule
• Public Official Position Schedule
• Tax Collectors
• Treasurers

Court Bonds are required of parties to a lawsuit who seek remedies that the law allows only upon posting a bond. They protect a party in litigation from possible loss suffered as a result of the courts' granting a privilege to the other party. In some proceedings, the opposing party may have the right to file a counter bond to negate the effect of the first request.

Court bonds in civil proceedings, also known as litigant bonds, are required in a cause of action at law. The purpose of these bonds is to preserve the rights of litigants in the granting of the privilege or remedy.

Examples of Court bonds that we provide include the following:

• Attachment bonds
• Cost bonds
• Indemnity to Sheriff bonds
• Plaintiff's bonds
• Replevin bonds

Notary Public bonds guarantee that the Notary Public will faithfully perform the duties as prescribed by the laws in their jurisdiction. Similar to other Public Official bonds, they protect the public from the Notary not performing their duties faithfully.

Safeco provides Notary Bond coverage in all states. Our rates are competitive, and our easy-ordering system allows you to get the bonds executed without completing an application. When necessary, Errors & Omissions coverage is provided at the same competitive rate.

Most businesses require permission from some governmental body to start and to continue in business. Many permits are granted only after the individual or corporation has posted a bond guaranteeing that the laws, ordinances or regulations relating to that business will be complied with. License and Permit Bonds fulfill this need.

The demand forlicense and permit bonds is created by public interest requirements. They put teeth into the laws, ordinances, and regulations that have been adopted for the protection of the public.

Examples of bonds we can provide are including but not limited to the following:

• Broker Dealer/Securities Dealer bonds
• Cigarette Tax bonds
• Commission Merchants bonds
• Contractors License bonds
• Gasoline Tax bonds
• Insurance Adjuster bonds
• Insurance Agent/Producer bonds
• Liquor License bonds
• Milk Dealer bonds
• Mortgage Broker bonds
• Motor Vehicle Dealer bonds
• Outdoor Advertising bonds
• Plumber, Electrician License bonds
• Private Detective License bonds
• Real Estate Broker bonds
• Sign License bonds
• Small Loan License bonds
• Street Obstruction bonds
• Tobacco Products Distributor bonds
• Warehouseman's bonds

• Warehouseman's bonds (Other than Grain)

When a person loses a stock certificate, a savings bank book, a building and loan share, or similar document, the issuer will not deliver a duplicate until the owner furnishes an indemnity bond. The bond guarantees that, should the original lost document be found, it will be returned to the surety or obligee for proper disposal. The principal is required to furnish an affidavit stating the circumstances under which the document was lost and if the document was endorsed, making it readily negotiable.

Lost Instrument Bonds fall into two groups, fixed and open penalty. The amount and type of bond required are specified by the obligee.

An open penalty bond is usually required for replacement of a lost instrument such as stocks and bonds, due to the fluctuation of securities. The bond is open because the amount cannot be known in advance.

A fixed penalty bond would be used for the replacement of a certified check where the amount is known. Many banks require these duplicate document bonds to be twice the value of the lost check.