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Treasurer Surety Bonds

If you have been elected or appointed to be the treasurer for a federal, state, county, or local agency, you may be required to get a treasurer surety bond before starting the role. All surety bond types are legally-binding agreements that help build trust between multiple parties, so it's essential to understand their inner workings. If you need a treasurer bond, explore all the basics below.

What is a Treasurer Surety Bond?

A treasurer surety bond holds someone accountable for following all the rules and regulations that apply to their role as treasurer. The surety bond makes them liable for paying any damages caused by their illegal or unethical misconduct. The agreement also guarantees compensation for anyone, whether an individual or office, that loses money because of an unscrupulous treasurer. By guaranteeing settlements to victims, surety bonds help to build trust in a treasurer. And by holding bad actors accountable, treasurer bonds create a powerful incentive to follow the law.

How Does Treasurer Surety Bond Work?

The best way to illustrate how a treasurer bond works is to highlight the three parties involved:

• Principal – The treasurer who obtains the bond. The principal agrees to pay the full amount of any valid claims the obligee files against the treasurer bond.
• Obligee – The person or party that suffers financial losses because of the principal. The obligee can file a claim against the surety bond for compensation equal to those losses, up to the bond penalty amount. They are guaranteed a settlement provided their claim proves valid after being investigated.
• Surety – The company that issues and underwrites the treasurer bond. The surety will step in to pay the obligee when the principal can't or won't pay to settle a valid claim, but the principal must then repay the surety that same amount (with interest and fees). Failure to repay the surety leads to loss of bond coverage, could result in lawsuits, and makes it much harder to obtain another treasurer surety bond.

Who Needs a Treasurer Surety Bond?

Most but not necessarily all treasurers working in a government office will need to obtain a treasurer surety bond. The required coverage amounts vary across localities. Treasurers working for nonprofits or private companies may also be required to get a surety bond for treasurers, but this is at the discretion of their employers. For all surety bond requirements, rely on Viking Bond Service.

How Do You Get a Treasurer Surety Bond?

In some cases, the agency that employs the treasurer will obtain the bond. They have the option to obtain what's known as a "position bond" that provides bond coverage to whoever serves in the treasurer role. More common, however, is for the treasurer to obtain their own bond with the required coverage amount. Getting the bond involves an application, a credit check, and, when necessary, turning over additional documentation to the surety. The surety will quote the cost of the surety bond, also known as the premium, and coverage begins as soon as it's paid.

What Does a Treasurer Surety Bond Cost?

A surety bond for treasurers costs a small percentage of the total coverage amount. The exact costs are different for each individual based on their credit. If credit issues make it harder to get approved for a bond at a fair rate, you can use a special credit program from Viking Bond Service to potentially resolve it.

Treasurer Bonds From Viking Bond Service

Serving all 50 states, Viking Bond Service can help you obtain the treasurer surety bond you need. Request a quote at any time. If you have questions, our team is here to help—contact us or call 1-888-2-SURETY (1-888-278-7389).