Public Official Bonds and Why they are Needed

Public officials are required to have public official bonds as a guarantee that they can be trusted in their position. Public official bonds enforce public officials to act ethically and not use any sensitive information for malicious reasons. If the public official indulges in fraudulent activities, then a claim can be made against their bond. The type of public official and their position will determine what type of public official bonds they are required to get. The common types of public officials requiring bonds may include city managers, commissioners, city officials, deputies, mayors, notaries, court clerks, tax collectors, city treasurers, judges, sheriffs, and other law enforcement officials.

There are 3 parties involved in a public official bond: the obligee, the surety, and the principal. The obligee is the state requiring the bond. The surety is the financial entity issuing the public official bonds. Lastly, the principal is the public official who is buying the bond.

The cost of these bonds is similar to commercial surety bonds, however, it may vary from state to state. Financial history, credit scores, and other factors can determine the rate of interest. However, the premium on a public official bond usually stays in the range of 1% to 4% of the total value of the bond.

If you are a public official looking to purchase a public official bond, you can visit a local surety company or look online. The online process is much quicker, and you can be issued a bond within the same day of applying.