State surety bonds (mandatory in many states)

This is a bond that the law requires certain investment professionals 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 provisions 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.

Liftman Insurance specializes in “automatic issue” State Surety Bonds, which are offered without the personal guarantee of corporate principals. To ensure prompt delivery, we also issue most state surety bonds directly from our office.