Want to buy ONLINE Commercial insurance now?
Click HERE to get coverage now!
As the name implies, a court surety bond is a bond required by the court as you will be fulfilling legal obligations on behalf of someone else. But what is a surety bond, who needs one and why? Below you’ll find information on what a court surety bond is, when you need one and how to get one.
Court Surety Bonds – The Basics
A court surety bond involves three parties. Those parties are:
The Principal. The Principal is the person offering their services.
The Obligee. The Obligee is the person to whom the responsibilities of service, or obligation, is being offered. The Obligee needs protection in case the Principal doesn’t live up to the agreement.
The Surety. The surety is the party, usually an insurance company, that guarantees the Obligee that the obligation will be fulfilled as agreed to by the Principal and agrees to pay the Obligee if the Principal fails in their duty.
A court surety bond is an agreement entered into by all three parties that guarantees that the Principal will abide by all required legal obligations including all applicable laws, regulations, court orders and applicable contracts. If the Principal fails to fulfill their obligations and the Obligee cashes the bond, the Principal is then responsible for paying the amount of the bond back to the Surety.
Types of Court Surety Bonds
Court surety bonds fall into one of two broad categories – Judicial bonds and Fiduciary or Probate bonds.
In general, Judicial bonds are used as protection against uncertainty in legal proceedings. In this context, in civil proceedings. An example would be that a person filing a lawsuit may be required to enter into a bond commitment that guarantees that they will pay all the required court fees and lawyer’s fees. Examples of judicial bonds include:
- Appeal bonds
- Defendant’s bond
- Injunction bonds
- Plaintiff’s bonds
Fiduciary or Probate bonds require that a person acting as an administrator, executor, guardian, trustee or committee will fulfill their duties and abide by all relevant laws and court orders. Examples include:
- Administration Bond – needed if you’ve been appointed by the courts to administer the assets of someone who passed away without a will.
- Estate (Executor) Bond – if you’ve been appointed to execute the terms of a will.
- Foreign Executor Bond – required if you live in a province other than the one of the court that is overseeing the estate.
- Guardian Bond – if you’ve been appointed by a court to manage the assets of someone they deemed to be incapable of managing their own affairs.
- Trustee in Bankruptcy Bond – if you’ve been appointed by a court or creditors to negotiate on behalf of the debtor and act according to the relevant bankruptcy laws and in the best interests of both the debtor and the creditors.
- Waiver of Probate Bond – required by financial institutions or private companies in order to transfer assets like stocks and bonds that were owned by the deceased to your name so that, as the estate executor, you can distribute them as required in the will.
How to Get a Court Surety Bond
The first and most important step is to choose the right bond issuer – someone with experience brokering court surety bonds who can guide you through the application process, help you prepare your application, let you know what to expect during the process, explain your obligations to you and be there when you need them.
At ALIGNED, commercial insurance is our expertise, we don’t handle any other type of insurance products and when you sign up with an ALIGNED advocate, they are with you through the entire process, we don’t pass our clients off from one broker to another.
If you have any further questions or need a court surety bond or commercial bond, contact an advocate who will be more than happy to help you find the best judicial court bonds to fit your needs.
We’re here to help you find the BEST commercial insurance…
Our team of insurance brokers is available to help answer any and all questions you might have about all of our commercial insurance products. If you have a question about business insurance, are uncertain about what a particular insurance coverage term means, or simply want to find commercial insurance that directly aligns with your needs, don’t hesitate to call us toll-free at 1-866-287-0448.
It’s time to get insurance value and choice aligned. Want Canadian business insurance that aligns with your bottom line? We can help. 365. Call us toll-free at 1-866-287-0448 or click to Get a Quote!
We’re ALIGNED across Canada. The ALIGNED Insurance National Operations Centre in Cambridge, Ontario supports our Toronto, Calgary and Vancouver offices. Our industry peers consistently recognize us as one of Canada’s best insurance teams. 100% Canadian owned, we are super proud to be one of the fastest growing insurance brokerages in the country.
We deliver e-news you can use. Get practical business insurance insights in your inbox every month. 19,000+ people subscribe to our free ALIGNMENT Matters e-news. Just click the JOIN OUR DISTRIBUTION LIST button – at the bottom of our homepage – to get connected.
365 | Get ALIGNED. Every day, Canadian business leaders read our insurance insights. Find us on LinkedIn, Twitter, Facebook, Instagram, LinkedIn and YouTube.