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Your Questions About Bonds Answered- In Depth

Updated: Apr 21, 2023

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 484-654-3380 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 484-654-3380.


This content has been prepared by United Methodist Insurance Company (UMI) for informational purposes only. No article or document may accurately contemplate all possible scenarios or church resources. As such, this information is meant to foster discussion by the individual church and its members to develop a plan tailored to its own circumstances. UMI is providing this information with no warranties or guarantees of any kind and it should not be viewed as legal, financial, or other professional advice. All liability is expressly disclaimed. Any claim examples described herein are general in nature, may or may not be based on actual claims, and are for informational purposes only. Any coverage available for a claim is determined from the facts and circumstances of the claim as well as the terms and conditions of any applicable policy, including any exclusions or deductibles. In the event of a conflict with the content herein, the terms and conditions of any issued policy will control. Individual coverage may vary and may not be available in all states.

The commercial insurance coverages for United Methodist Insurance are sold and serviced directly or indirectly by Sovereign Insurance Agency (CA Lic. No. 0B01380) ("Sovereign") and underwritten by various available insurance markets. Sovereign pays United Methodist Insurance a royalty for the use of its intellectual property.


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