According to the NASBP, a surety bond is "a promise to be liable for the debt, default, or failure of another. It is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee)." (Photo: Stock)
Surety bonds are a necessity because courts don't want to hold cash, cashier's checks or letters of credit, preferring a bond from a surety carrier in nearly every case. Attorneys and their clients need all types of court and defendant and plaintiff bonds, including appeal, injunction, custodial or guardianship, and probate bonds. All common court bonds are intended to financially protect the various parties involved in legal proceedings.
Interestingly, court bonds might just be recession-proof, as business disputes and estate settlements seem to carry on no matter the state of the economy. While court matters can be a business pipeline for local attorneys experienced in the needs of courts, a law firm may prefer to look to a capable bond producer for help in securing the right bond.
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