California Process Server Bonds

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What Is a California Process Server Bond and Why Do You Need It?

A California process server bond is a form of license and permit bond. It guarantees that the process server will operate in compliance with the applicable section of the Business and Professional Code of the state of California. It provides protection for the public, specifically for parties who experience a financial loss due to the actions of a registered process server. The bond must remain in force for the process server�s registration to remain valid.

Who Needs It?

Applications for registration as a process server in the state of California must be submitted in the county in which the person plans to work. Every county requires a $2,000 surety bond along with the completed registration application and application fee. It�s unlawful to operate as a process server in California without completing the county-specific registration process, including bonding.

How Does It Work?

Each of the three parties bound together legally by a surety bond agreement play a specific role, with specific rights and responsibilities.

• The person requiring the purchase of the bond is the obligee. The obligee establishes the required bond amount (or penal sum) and spells out the terms and conditions the process server must abide by.
• The process server is the principal, the party pledging to operate in a lawful and ethical manner. The process server is obligated to pay valid claims against the bond if he or she violates any of the bond’s terms and conditions.
• The company that underwrites and issues the process server bond is the surety. The surety sets the premium rate that a given applicant will pay.

What Happens When A Claim Is Filed?

If you�re wondering what happens in the event of a claim against a California process server bond, here�s what you need to know:

• The surety conducts an investigation to make sure that the claim is valid.
• If the principal cannot make immediate payment to the claimant, the surety will typically advance the money so that the claimant doesn’t have to wait to get paid. But that doesn’t let the principal off the hook.
• The principal is legally obligated to reimburse the surety for any money paid out on his or her behalf to settle a claim. The advance payment by the surety simply gives the principal a little time to gather the funds to cover the claim.

What Does It Cost?

The process server will pay only a small percentage of the total bond amount as the annual bond premium. That percentage is determined by the surety on a case-by-case basis, based in large part on the applicant�s personal credit score. The surety is interested in making sure that bonds are issued only to people who are willing and able to cover the cost of claims.

If your credit is good, you may pay as little as 1% of the required bond amount. If your credit is poor, you�ll pay a higher premium rate.

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Let us help you get the bond you need to launch your career as a California process server!

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