Lost Securities Bonds are needed when a company or contractor has lost their instruments, and they need replacements for the original ones. With this bond, you can simply put aside any worries regarding losing your business instrument, because you have the lost securities bond to replace the original document containing the validity/proof of your business transaction.
The instruments covered under this bond include life insurance policies, stock ownership certificates, corporate bonds, and other key documents as well such as contract letters, deal signing documents, property ownership documents and any other document that holds the proof of any business agreement signed by both the parties involved. Also referred to as ‘Indemnity Bond’, this surety bond ensures the safety of the issuer against financial losses if the lost instrument is found later on.
Although it is not often that you lose important documents related to your business or personal life, but you also never know when things might take an unpredictable turn and you might lose big time, due to a lost instrument. That’s why; it is not a bad idea at all to buy a Lost Securities Bond for the safety of those instruments/documents that are of immense value in your personal and business life.
As a matter of fact, this is definitely one bond that you can always go for whether you are running a business or not. This bond can be ideal even for security against loss of personal instruments such as, personal insurance policies, asset ownership documents and financial investment bonds as well. This bond also acts as a guarantee that if a lost document which has been replaced is found at a later stage, it can be properly disposed in a manner in which it doesn’t incur any financial losses to the parties involved in the future.
Penalties associated with Lost Securities Bonds…
Another important aspect of having a lost securities bond is, the penalty associated with it. Currently, there are only 2 types of penalties being levied on these Bonds at this juncture. There are fixed penalties levied on instruments that don’t have a fluctuating value like a Cashier’s check. In case of instruments having a fluctuating value, like stock certificates for example, the penalty levied in such a scenario is an open penalty.
If you are considering going for a Lost Securities Bond, you would find no dearth of companies offering these bonds online for purchase. As far as the type of instruments covered under this bond, you can refer to this list given below…
• Stock Certificates
• Life Insurance Policy
• Certificate of Deposit
• Warehouse Receipt
• Check or Money Order
• Interest Coupon
• Financial instruments & securities