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http://www.titlepac.com    Phone : 1-800-331-9759    Fax : 918-683-6842

BONDS

TitlePac offers Surety Bonding and Fidelity (Crime or Employee Dishonesty) Bonding for Title Professionals. All bond markets are rated "A" or higher by A.M. Best.

What is a Surety Bond?

A Surety Bond guarantees the fulfillment of a legal obligation. It is a three-party agreement where the third party (the Surety Company) guarantees to a second party (the Obligee or State in most cases) the successful performance of the first party (the Company or its Principals). Primarily, Surety Bonds protect public and private funds (consumers) from financial loss.

A Surety Bond is not an insurance policy. A bond is an extension of credit based on an assumption that an obligation will be met and no loss will occur. On the other hand, an insurance policy assumes a loss will occur and therefore premiums are figured to cover that loss. When a loss does occur on a Surety Bond, the Surety Company is significantly impacted.

Why Do Most Surety Bonds Require an Indemnity?

Under common law, a Surety Company has the right to be indemnified by the company or its principal(s) in the event of a loss. This makes the Surety Company whole and to indemnify means to make whole. If a company is a closely held corporation or partnership, the individual principal(s) and their spouses may be asked to personally indemnify the bond. Personal indemnification shows the principal's personal commitment to their company and the Surety Company to meet their/its obligations.

Surety Bond Claims

If the company does not fulfill its obligations under the bond, the Obligee can make a claim against the bond. The Surety Company steps in to make the Obligee whole. The Surety Company then looks at the company and its principal(s) for reimbursement of the loss and expenses incurred under the indemnity agreement. Companies should quickly respond to the Surety Company to minimize costs and expenses to all involved.

What is a Fidelity Bond, Employee Dishonesty Bond or Crime Coverage?

Fidelity, Employee Dishonesty or Crime all provide insurance protection against loss as a result of theft, fraud, forgery or other acts by employees. A Fidelity or Employee Dishonesty bond specifically protects against theft or fraud by your employees. A Crime policy includes this coverage on employees but can also provide greater protection against forgery, theft inside or outside your office, or computer fraud. A Crime policy can also offer higher limits of coverage anywhere from 250,000 up to 1,000,000. These coverages can be found for reasonable prices. Click here to complete the Crime Policy Application.

Bond Applications & Underwriting

Surety and Fidelity coverage is available from our traditional markets. Click here to complete the Title Agent State Required or Fidelity Bond Application. Once you have completed the application, please email it to underwriting@titlepac.com or fax it to (918) 683-6842. Some bond companies may pull credit reports to determine eligibility or pricing. If an applicant's credit score falls below certain levels, the bond company may request additional information of explanation of poor credit performance. They may decline coverage. If traditional markets decline to offer coverage, please contact TitlePac to discuss access to other non-traditional or high risk bond markets.


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