[dsirca]

I am wondering if anyone knows what kind of bond I would need to get in order to work with private info. From other people. Ie: talking to banks for them, mortgage lenders etc. I want to be bonded to show I am trustworthy and reputable, but unsure of what kind of bond this would be or where to obtain it.

Any help would be greatly appreciated.

:)

[ScottGem]

A bond doesn't make you anymore trustworthy. It simply shows that you are covered by liability insurance.

[dsirca]

I see. I appreciate the response. I am just trying to do the right thing and if bonding is not it then I'll keep digging. Thanks!

[ScottGem]

You MIGHT need to be bonded as a requirement of doing certain types of businesses. But your customers will tell you if its necessary.

[RichardBondMan]

There are two basic categories of bonds, fidelity and surety. Surety bonds are typically required by governmental entities such as states, cities, counties or if in LA, parishes and those a usually required by such governmental entities as a prerequite to obtaining a license to operate certain kinds of businesses. Surety bonds can also be required of contractors doing construction contract work for the owner or general contractor overseeing a construction project. One cannot simply want to be bonded when discussing surety bonds. Some one, some governmental entity or a general contractor must first require a bond. Surety bonds are three party financial instruments, one party is the obligee, the entity requiring the bond, the principal, the individual or company being bonded and the surety, the insurance company that is taking the risk. Surety bonds are not inaurance rather they are "extensions of credit" much the same as a letter of credit issued by a bank. They are NOT a contract of insurance. Fidelity bonds are more like insurance, in that the insurance company will not file suit against the insured as they will with a surety bond, the insurance company will simply pay the loss caused by a dishonest act and will not require repayment from the insured. With a surety bond, the insurance company will seek repayment from the principal and will have common law rights of indemnity even if the principal has not signed an agreement of indemnity. Insurance companies will normally require that the principal sign an agreement of indemnity for risky surety bonds and will include attorney's fees in the agreement. I am not aware of any bond that is required of the kind of work you have mentioned but check with you city, state and county to verify this as laws and regulations vary. I would discuss liability insurance with your insurance agent and he will perhaps ask if you enter into contracts with your clients and may want a copy of a sample contract. Discuss with him if the contracts you enter into will be covered by your liability insurance. People, employees as well as owner's of companies, have access to other's private information on a daily basis. Goverments and their employees have access to private information also. Medical practices as well as clinics, medical labs, etc. have access to private information. In all these cases, it's usually against the law to disclose personal information of others and doing so would be contrary to public law as well as civilally punishable. If a bond is required by any governmental entity and I doubt one is, any such bond should not be considered as liabilty insurance. Only a fidelty "bond" or true fidelity insurance can be considered as a contract or insurance and fidelty bonds or fidelty insurance are not liability insurance nor are they surety bonds.

[ScottGem]

After doing some research my initial answer here, while not inaccurate In my opinion, was inadequate as it didn't go into enough detail. Richard's more detailed explanation is very good. And does cover the subject much better than my answer did.

Merriam Webster defines liability as the state of being liable. It defines liable as obligated according to law or equity. It also defines bond as something that binds or restrains and a committment. Under those definitions a bonding company insures that a contract will be completed. Thereby protecting the party on the receiving end from non performance by the bonded party. This could be stated that the bonding company is assuming liability for the completion of the contract. So I do believe my answer, while not technical enough, was accurate.

But I do thank Richard for sharing his expertise with us and providing a much better and more complete explanation.