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Injunction Bonds

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Injunction Bonds Explained

Injunction bonds are a type of court bond. They are used when a plaintiff demands a court to impose an injunction on the defendant to refrain from certain acts or execute a certain act.

In many cases, courts would demand from the plaintiff to obtain an injunction bond before enacting an injunction. It serves as a guarantee that in case the injunction is later found as unnecessary, the plaintiff will pay any court fees and costs, as well as the defendant's damages.

The injunction bond is, in essence, a contractual agreement between three entities. The plaintiff is the principal. The defendant is the obligee, while the surety is the third party, providing the bonding.

Questions about Injunction Bonds

When do I need an injunction bond?

A court can order you to obtain an injunction bond when, as a plaintiff, you apply for an injunction to be enforced on a defendant. You will then need to apply with surety and obtain an injunction bond so that the court can proceed with imposing the injunction.

The three types of injunctions include a temporary injunction (temporary restraining order), preliminary injunction (during a pending case), and permanent injunction (after the court judgment).

How much should I pay to get bonded?

The cost of your injunction bond will depend on the bond amount that the court has demanded from you. It has to be large enough to compensate for costs and damages in case of a wrongful injunction from your side.

The surety bond cost that you should pay is based on this bond amount. It is only a small percentage of it, called the bond premium, which can be around 1%-2%.

The surety that you apply with will consider the strength of your personal finances, including your personal credit score. In this way, it can assess how likely you are to pay out proven claims on your injunction bond. The higher the risk of non-payment, the larger your bond cost will get.

Is bonding possible with bad credit?

In general, if you have bad credit, you won't be able to obtain most types of court bonds. In the case of injunction bonds, they are issued on the basis of a review of your personal finances. The stronger they are, the higher chance you have to obtain the bonding.

How do I obtain this bond?

In order to obtain an injunction bond, you need to do the following:

  1. Download and complete the application forms

  2. Fill them out and send them to [email protected] or fax them to (267)-362-4817.

Interested in learning more about bonding? Don't miss our in-depth How to Get Bonded page.

Lance Surety Bonds' experts can help you with any questions you may have about injunction bonds. You can reach us at (877) 514-5146.

What happens in case of a bond claim?

If an injunction is deemed wrongful and the defendant has suffered damages due to it, they can file a claim against your bond. The surety then has to investigate the case and determine whether it is valid or not. In case it is proven, the surety will urge the plaintiff to pay off the damages.

If the plaintiff fails to do so, the surety will step in to ensure the compensation to the defendant. However, the plaintiff will need to repay it fully, as per the bond indemnity agreement. Thus, the costs on claims remain the liability of the plaintiff.

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About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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