Court Bonds

Many court cases require court bonds for plaintiffs or defendants. They protect the other party involved in the case to prevent financial losses, especially if action is needed prior to the final judgment.


Plaintiff bonds include attachment, replevin, garnishment. They are required if the plaintiff is going to do a garnishment or repossession of assets. Banks often need this type of bond to recoup property due to defaulting loans. Merchants Bonding Company is an excellent market for many plaintiff bonds.


Defendant bonds include defendant’s appeal, counter replevin, release of attachment, and release of mechanic’s lien. They are required to protect the plaintiff if the defendant loses the case. A case may require an appeal bond if the judge has already ruled against the defendant, but they want to continue the fight. The bond would cover the costs if the defendant is not successful. Defendant bonds are a more hazardous risk.


Merchants underwrites the majority of plaintiff court bonds with our standard commercial bond application, including the Court Bond section (page 2), clean credit reports of the owners, and financial statements, in addition to copies of the court documents.

Plaintiff bonds written for banks can be written up to $50,000 within the agent’s authority, but applications and court documents may still be required. For all other types of court bonds, applicants must provide underwriting information before issuing.

We will sometimes agree to write defendant court bonds, but we usually require full collateral.


Surety bonds are issued by Merchants Bonding Company (Mutual) through insurance agents. Contact your local insurance agent or use our Find an Agent tool. They will guide you through the process, informing you of what documents and information are needed by the surety (Merchants Bonding Company (Mutual)) to underwrite your bond.


A surety bond is a three-party agreement that ensures the fulfillment of a commitment or contract. For instance, the surety (Merchants Bonding Company (Mutual)) may provide a surety bond to a construction company (the principal) which is required by the state (the obligee), ensuring the construction company will perform the duties as outlined in the contract. In bonding the construction company, Merchants assumes the risk should the company default or not fulfill their contract. A surety bond is different from traditional insurance in that the principal is obligated to pay back the surety company on any claims paid out.

All information provided is subject to change.