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Private Investigator Bond

Private investigators need a license at the state and sometimes local level before they can work legally. One of the requirements for obtaining a license is to have a private investigator surety bond. Here are the answers to some common questions.

What is a Private Investigator Bond?

A private investigator bond is a way to hold these individuals responsible for illegal or unethical conduct that causes damage to specific persons or parties, or to the public at large. All surety bond types, including this one, involve three parties in a legally binding agreement:

• The Principal must obtain the bond and accept liability for claims.
• The Obligee files claims against the bond seeking compensation from the principal.
• The Surety issues and underwrites the bond. If the principal can't or won't pay a claim, the surety guarantees a settlement. However, since the principal (not the surety) has legal liability for claims, the principal must pay back the settlement amount plus interest and fees.

By holding a private investigator responsible for misconduct, bonds create a strong incentive to follow state and local laws. And since private investigator surety bonds guarantee a settlement to the obligee, they create a simple way to resolve the damage for anyone harmed by a private investigator.

How Does a Private Investigator Bond Work?

Imagine a private investigator who accepts a large sum of money from a client but never conducts the investigation agreed upon. The obligee could file a claim against the private investigator surety bond seeking damages equal to the money paid.

The surety investigates every claim it receives. It will only settle claims after proving that the principal has caused the damages that the obligee claims. Valid claims receive an immediate settlement in full.

Even though the surety agrees to settle all valid claims, it does not have the ultimate financial liability for those claims. Liability rests on the principal according to the bond agreement. Therefore, the principal – the private investigator who caused the claim – must repay the surety the full settlement amount (plus added costs). Failure to pay could lead to a lawsuit or debts sent to collections.

How Needs to Obtain a Private Investigator Bond?

Many but not all states require private investigators to have one of these bonds. Cities and counties can also impose surety bond requirements. It's important to fulfill any bond requirement quickly because licensure and legal authorization to work depend on it. For help determining your own surety bond requirements, rely on Viking Bond Service.

How to Obtain a Private Investigator Bond?

The process to obtain a private investigator bond is quite simple. Here's what to expect:

• Complete a bond application
• Undergo a credit check
• Provide supporting documents (when necessary)
• Receive a quote
• Pay the premium

What Does a Private Investigator Bond Cost?

The cost of a surety bond will be a small percentage of the bond's maximum coverage limit, referring to the total amount the surety commits to paying to settle claims. Coverage requirements vary across states. The exact percentage a private investigator pays depends on his or her credit standing. Great credit leads to lower premiums, however, anyone with credit issues could ultimately be denied a bond. Those worried about getting approved or paying a fair rate should take advantage of our bad credit surety bond program at Viking Bond Service.

Viking Bond Service – A Bond Partner for Private Investigators

As a nationwide surety agency, we work with private investigators in all parts of America. Some of those investigators we have worked with for years, helping them meet all their ongoing bond requirements in a simple, stress-free way. If you need a private investigator surety bond, you can request a quote at any time and expect a response within 24 hours. For more questions about any part of the bonding process, don't hesitate to contact us or call 1-888-2-SURETY (1-888-278-7389).