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This 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.
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.
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. Usually the bond amount is set to at least $10,000 by the USPS.
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.
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 AlternateAccess@usps.gov. A local USPS representative will answer all questions.
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. The price to renew a bond is drastically cheaper than the original price for the bond.
For additional information about this bond type, visit the USPS official page.