A public official or surety bond provides a financial guarantee against loss that the official duties of an office will be faithfully performed according to the law during a specific term of a specified office.
A public official is someone who is accountable to the public. Therefore, any public official handling money, overseeing budgets or handling financial matters and making decisions for a city or other public entity should be bonded. State or local statutes as well as public charters may require that a public official be required by law to furnish a surety bond in order to perform his or her job.
The duties of a public official are explained in the state statutes, city statutes or public charters. Should a public official fail to meet their obligations of their job duties and a loss ensues, the public official responsible has the obligation to pay back the public for any loss, regardless of how the loss occurred.
The public official bond does not pay losses in place of the public official. The bond only guarantees that, should the public official be unable to financially meet their obligations from the loss, it will pay in their place up to the face value of the bond.