Lost Instrument Bond
Lost instrument bonds protect against the loss of a financial instrument such as a deed, a certificate of deposit, or a cashier's check.
Key Highlights
- Several other objects can be bonded under the lost-instrument bond umbrella, such as promissory notes, municipal bonds, corporate bonds, life insurance policies, and real estate certificates.
- Lost instrument bonds serve as a protection to the issuing party that it will not suffer losses when the lost check or other document is found.
- A fairly typical cost guideline is $20 for every $1,000 of value of the lost instrument.
How do I purchase a lost instrument bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue lost instrument bonds in each of the 50 states. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
Lost Instrument Bond FAQs
Lost instrument bonds protect against the loss of a financial instrument such as a deed, a certificate of deposit, or a cashier's check. When such an instrument is lost and you request that the issuer replace the original, there must be some guarantee to the issuer that it will not lose money if the original eventually resurfaces.
That guarantee will often take the form of a lost instrument bond, which serves as a protection to the issuing party that it will not suffer losses when the lost check or other document is found. In the case where you have lost a check and purchased a bond, and then the original check is found, you would need to take that check to the issuing organization and simply turn it in. Failure to do this could cause a claim to be made against the bond by the issuing company, and you would eventually have to pay this amount.
There are many objects that can be considered lost financial instruments, including a cashier's check. However, there are several other objects as well that can be bonded under the lost-instrument bond umbrella, such as promissory notes, municipal bonds, corporate bonds, life insurance policies, and real estate certificates.
When any of these financial documents are lost or destroyed, you can seek to have them restored by the issuing organization, at which time it would be a good idea to purchase a lost instrument bond. It's possible that the issuing organization would require you to purchase the lost instrument surety bond so that it can be protected against potential losses if the original were to be found.
The costs are determined by the organization that originally issued the document, typically an amount equal to 1.5 times the value of the certificate or document that was lost. The cost to the bond purchaser will amount to a one-time premium representing the degree of risk taken by the surety company in underwriting the bond.
A fairly typical cost guideline is $20 for every $1,000 of value of the lost instrument. If a promissory note for $50,000 were lost, you would probably have to pay in the neighborhood of $1,000 to the surety company to purchase a bond covering the amount of the certificate. It's also possible that the amount charged to you for the surety bond could be higher if your credit score is less than ideal because that would constitute a greater risk for the surety company. However, when amounts of less than $5,000 are involved for the loss of a financial instrument, you can expect that the cost of this bond will be set at $100.
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