Bond Loss Subrogation
Achieve the Recovery to Which You Are Entitled Under Your Bond Policies
If you face bond loss, the attorneys at Keis George LLP can help you achieve the recovery to which you are entitled under your bond policies. We have advised clients throughout the entire bonds claims process, including investigation of the loss, preparations of proofs of loss, and gathering evidence and testimony to support a claim.
Effective subrogation recovery of common bond losses
When the law requires a party to post a bond, the obligated person or entity enters into a contract with a surety, a company that guarantees payment of the principal’s obligations if the principal somehow defaults. Common surety bond scenarios we have managed include:
- Fidelity bond — Although commonly called a bond, this instrument is actually an insurance policy that indemnifies a corporation against losses caused by dishonest employees.
- Fiduciary bond — This instrument protects beneficiaries of a trust or other legal entity from negligent or illegal conduct by a fiduciary, trustee, or officer.
- Performance bond — Usually a three-party arrangement incorporating labor, material, and maintenance liability.
In all of these scenarios, as well as others, the surety may be obliged to pay on behalf of the principal, but may also have a right of subrogation against the person or entity that caused the principal to default. For example, a trustee is personally liable for losses to a trust due to incompetent or dishonest management of trust assets. The surety that posted the fiduciary bond is contractually obligated to make good the beneficiaries’ losses. However, the surety can pursue a subrogation claim against the fiduciary to recovery those losses.
Our experience in complex surety matters enables positive outcomes
Many sureties miss opportunities to pursue subrogation because their decision-makers do not have a complete understanding of this complex area of the law. Fortunately, our bond loss attorneys have been managing these claims for more than three decades. We understand how most carriers manage bond claims, and we can work closely with you to pursue appropriate remedies. In this area of the law, results most often depend on experience.
We have the resources to confront bond loss
If you face bond loss, the attorneys at Keis George LLP can help you achieve the recovery to which you are entitled under your bond policies. We have advised clients throughout the entire bonds claims process, including investigation of the loss, preparations of proofs of loss, and gathering evidence and testimony to support a claim. To take advantage of the capabilities of a national law practice with the thoughtfulness of a local firm, contact Keis George at (216) 241-4100 or request a consultation with one of our attorneys.