Updated: Mar 17
What is a bond? A surety bond (bond) is a binding contract that helps ensure financial obligations are met and/or provides coverage for damages if obligations are not met. They are often issued to and held by people in fiduciary roles. As an example, a surety bond can help protect an organization if the bonded party intentionally or unintentionally mishandles funds.
Why do I need insurance as well as a bond? Insurance coverage for churches helps protect their people, property, and finances.
However, churches can also benefit from bonds because of the additional coverage they can provide. A surety bond is a stand-alone product and the protection it offers is usually not included with standard property and casualty coverage.
Additionally, it is important to remember that even if you have employee crime and dishonesty coverage, in many instances that type of coverage may not provide the same level of protection as a bond or may even be insufficient in some cases. Please also note that while your employee crime and dishonesty will likely need to meet a deductible, your bond will not.
How does it work? A bond mandates that the insurance policy that bonds the respective party will pay a set amount of money to the insured if the bonded party does not fulfill a contractual obligation. This can help the church recover associated losses.
How can I get a bond? You can quickly and easily get a bond through UMIP. Simply call (866) 203-0777 to get a free bond quote.
Who can be bonded? You can bond any church employees or volunteers who are involved with or have access to church finances or financial information. This can help to further protect your church.
To get a free quote for a bond through UMIP, call (866) 203-0777.