A lost instrument bond is a type of surety bond that guarantees payments on a financial obligation.

When a financial certificate like a cashier’s check is lost or stolen, the institution that issued it is held responsible. Therefore, if a duplicate instrument is issued and the lost or stolen check is deposited, the issuer must pay those funds.

A lost instrument bond is put in place to guarantee when or if the original lost instrument reappears, the bonded party will not be able to cash it.

Financial institutions typically require these bonds before replacing financial documents. Essentially, they ensure the bank does not lose money by paying a financial amount more than once.

Lost instrument bonds are also needed to claim ownership of assets if you are missing documents that prove ownership of stock certificates, property deeds, notes or car titles.

There are two types of lost instrument bonds: open penalty and fixed penalty.

Open penalty bonds have fluctuating market values and can be issued for lost items. Fixed penalty bonds are required when the lost items have a fixed value, such as certified checks or certificates of deposit.

Lost instrument bonds are most often needed by:

•           Any company that loses a stock certificate or mortgage note

•           Banks

•           Brokerage firms

•           Individuals

•           Transfer agents

At Glenn Insurance, bonds are our specialty! With more than a century of experience caring about South Jersey businesses and families, our experts will be happy to serve all your bonding needs.

To learn more about our bonding services, call our bond specialists.

•           Kamini (609) 857-6616, KPatel@GlennInsurance.com.

•           Kelly (856) 777-5410, KSmuzinsky@GlennInsurance.com

For more information about Glenn Insurance bonds, click here.