 National Association of Counties * Washington, DC / Vol. 30, No. 8 * April 27, 1998  Surety Bonds are Officials' Responsibility Many state statutes require that public officials provide surety bonds to assure appropriate performance during office. Public official bonds exist to ensure faithful performance in office. The bonds transfer the risk from the county or county elected official to the bond underwriter in the event of a loss. The loss may occur from an intentional or unintentional act of an official or employee of the county. The statutes hold the public official accountable for both intentional and unintentional acts by themselves and their employees; there is a higher standard of care required for county elected officials by these statutes. The Insurance Center (IC) for Local Government can provide these required bonds that county elected officials must purchase. The Insurance Center is a partnership of NACo Financial Services Center and Sedgwick, Inc. In the state of Washington, county elected officials had been paying $100 annually and the IC charged only $17. The IC offers fidelity bonds, construction bonds and contract bonds. Because NACo-FSC has thoroughly investigated this product, it is the least expensive and provides excellent coverage. No matter what your state law requires, the IC will provide a bond of at least $25,000 and save you money. Additionally, to ensure that this is not one of those items that is overlooked next year, you will be automatically contacted in a timely fashion. Though this may seem like a small item, it is required by law. You can quickly take care of this with one call to 800/731-2663. The next day you will receive the bond by fax, and take it off your "to do" list. These prices are also available to your local insurance agent on your behalf or your state association insurance pool. (Financial Services News was written by Steve
Swendiman, managing director of NACo-FSC.) |