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What is This Bond For and What Does it Do?

The Postal Unit Surety Bond guarantees the private postal unit supplier will account for and pay all collected fees from stamps, residual postage value shown by the postage meter, money order stock, stamped paper, mail matter, along with all other property of the USPS which is collected by the supplier. All privately collected postal value must be paid in full to the USPS.

The three parties of this bond include the obligee, the principal, and the surety company. The obligee is the United States Postal Service (USPS). A private postal unit supplier (the principal) must be bonded in order to assist customers and to collect fees. The surety company is the party that underwrites and ensures the bond.

The surety bond is an agreement between the three parties that the principal will act accordingly to what is stated in the bond. If the private postal supplier acts fraudulently, then the surety company will cover the claim filed against the bond.

Obligee and Bonding Requirements

It is a good idea for the principal to be informed on all bonding requirements before applying for a bond. If the principal acts fraudulently and a claim is filed against the bond, then the surety company will pay for all paid claims which the principal must pay back to the surety.

As stated above, the obligee for this bond type is the United States Postal Service. That means if a claim is filed against the bond, the USPS will always be legally and financially protected by the bond. The surety company does not set the bonding requirements, the obligee does.

Postal Unit Surety Bond Amount

The cost for the bond is also referred to as the bond premium. The bond premium is the one cost that the surety company sets. All other fees that are related to the bond are set by the USPS. The bond premium is only a small percentage of the bond amount.

The bond amount is set by the local government, not the surety company. Bond amount is the amount of coverage the surety company will pay out to the party harmed if a claim is filed against the bond. Each state has its own bond amount, so it’s a good idea to check with the USPS for the exact bond amount before applying for the bond. For example, Arizona sets the bond amount to $3,000, and California sets the bond amount at $35,000.

What Does One Need to Become a Postal Unit Supplier?

According to the USPS, in order to become a privately owned and operated postal unit supplier, the supplier must follow all bonding and licensing requirements. Part of the licensing requirements is of course a surety bond. The USPS tells prospective suppliers to email the USPS with the supplier’s contact information to A local USPS representative will answer all questions.

Does This Bond Renew?

Yes, this bond renews and is continuous for only a three year period. That means the bond must be renewed once every three years in order to remain valid.

How do I get a  Postal Unit Surety Bond?

At Surety1, we make it easy. Simply visit our easy to use, online application. Usually within 1 business day, one of our surety professionals will contact you with a no obligation quote for the bond. Next step is you sign some paperwork, make payment (all major credit cards accepted) and your bond will be delivered to via traceable delivery. Overnight delivery is also available.

Surety1 is part of AssuredPartners, one of the nation’s largest and fastest growing insurance agencies. Surety1 has been a premier internet provider of surety bonds since 2003 and maintains an A+ rating from the Better Business Bureau.

For additional information about this bond type, visit the USPS official page.



How to Get Your Postal Unit Surety Bond

  1. Complete an online application. It’s free and no-obligation.
  2. One of our surety experts will contact you with a firm quote and an agreement to sign.
  3. Provide payment and your signed agreement, and then you will receive your Surety Bond!

If you have any questions, please call us at 877-654-2327.

How to Get Bonded

1. Apply Online
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2. Get Your Free Quote
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3. Get Your Bond
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Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.

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