What is a cost surety bond?
A cost bond guarantees that policyholders pay all required court expenses. Like other court and probate surety bonds, cost bonds are three-party contracts involving an obligee, a principal, and a surety.
- Obligee: The court that requests the bond
- Principal: The plaintiff responsible for buying the bond and abiding by its terms
- Surety: The insurance company that backs the bond
Get Your Cost Bond:
Quick Takeaways
- Typically, a plaintiff planning to file a lawsuit in a state they don’t reside in must post a cost bond first.
- This bond ensures that you pay all litigation expenses you owe after a case is through.
- If you don’t pay all fees associated with pursuing litigation, the court can file a claim on your bond.
- The price of a cost bond depends on the state.
Who needs cost bonds?
Typically, a plaintiff planning to file a lawsuit in a state they don’t reside in must post a cost bond first. However, some states require resident plaintiffs to post cost bonds as well, especially if they suspect the reasoning behind the lawsuit. Once you know you’re required to obtain a bond, contact a trusted surety provider who can issue your bond as quickly and securely as possible. This bond ensures that you pay all litigation expenses you owe after a case is through. Expense examples include deposition fees, court fees, attorney fees, paralegal fees, legal research services, private investigators, record requests, etc.
How do cost bond claims work?
If you don’t pay all fees associated with pursuing litigation, the court can file a claim on your bond. Your surety will investigate to ensure the claim is legitimate (which it likely is since the court is filing the claim against you). If the claim is valid, you will have another chance to pay what you owe. If you don’t, your surety will settle the claim for you. Then you must repay them with interest.
How much do cost surety bonds cost?
The price of your cost bond will depend on the state. Expect to pay a small percentage of the bond amount required. You may also need to post collateral, depending on the surety provider. Your premium rate will depend on various factors, including your credit history, financial situation, and the legal action. The more positive these factors are, the less you’ll pay for your bond. Generally, you’ll pay under $500 for a cost bond.
How to Get a Cost Bond in Your State
If you’re required to obtain a cost bond, you can apply today by sending us a copy of your court order. Complete our simple cost bond application and then pay for and print your bond! If you have any questions or want us to walk you through the application process, call us at (888) 435-4191.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.