This is a bond which certain investment professionals are required by law to post with some states. It is a contract whereby an insurance carrier (the surety) agrees to have secondary responsibility to the state (the obligee) for any default or debt of the investment advisor (the principal). It generally permits the state and residents of the state to sue under the Bond for damages incurred as a result of the principal’s violation of the conditions of the Bond and/ or the state’s securities laws. The Bond indemnifies the obligee for losses sustained as a result of such default, up to the amount of the Bond. The Bond is written in lieu of a letter of credit, therefore, the principal must indemnify the surety for any losses the surety sustains in fulfilling the failed obligations of the principal.

Liftman Insurance specializes in “Automatic Issue” State Surety Bonds which are offered without the personal guarantee of corporate principals. We also issue most State Surety Bonds directly from our office to ensure prompt delivery.

Click here to download a State Surety Bond Indemnity Agreement.