Sometimes referred to as depository bonds, this product is a type of surety bond. It is an insurance product with which a surety company guarantees the obligations of another entity to a third party.
The Excess Deposit Guarantee Surety Bond by Surety1 can be used to guarantee your customers’ deposits in excess of FDIC limits, providing the security of an A.M. Best rating of A+ (Superior) and a Standard & Poor’s rating of AA (Very Strong).
Excess Deposit Guarantee Bonds provide banks and credit unions deposit protection over Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) insurance coverage. This protection allows financial institutions to attract and retain valuable customers.
The bond is to protect your clients from any harm or wrongdoing by your company. If there is a claim placed on your bond and you are found at fault, the surety company will pay out. However, unlike insurance, you will have to pay the surety company back.
Here at Surety1, we have been providing low cost bonding since 2003, and we work with over a dozen different companies to provide our customers with the lowest price possible. We offer a free and easy to use online application to provide our customers with a fast and free quote from one of our surety experts.