The Court of Protection (the Court) will appoint a Deputy to look after the affairs of a person who lacks capacity. For the Deputy to act, the Court requires that a Surety Bond is put in place to safeguard the assets of “P”. The Surety Bond is a guarantee to pay any financial losses suffered by ‘P’ arising from the Deputys’ failure to perform their duties as directed by the Court and/or the Office of the Public Guardian.

The Surety Bond is required to enable the estate of 'P' to be reinstated quickly. If the Court had to claim directly against you, they are concerned that this could take many years to prove a claim. In this period 'P' could suffer financially and this could be detrimental to their welfare.

The premium is normally payable annually. We will write to you before each anniversary to request payment. On small estates it is possible to arrange a Surety Bond with a single payment for the lifetime of the Bond.

The premium is calculated based on the amount of security the Court has specified in their order.

The security amount is fixed by the Court, and can only be amended on their instructions. If they advise us an amendment is needed we will arrange this and confirm to you when the alteration is completed.

If you no longer wish to act as a Deputy you must apply to be relieved of your duties. The Bond premium is still payable until the Court issues a Court Order to discharge the Deputy.

All Bond premiums are payable unless a Court Order is obtained relieving the Deputy of their Duties. No further premiums are payable if “P” sadly passes away. If you do not pay we are required to advise the Court.

The security will not be discharged until 2 years after the date of death of “P”; or  in any other case, at the end of the period of 7 years beginning on whichever of the following dates occurs first:- 

•The date of the death of the Deputy;

•The date of an Order that the Court makes which discharges the Deputy, but which does not also discharge the security

•The date when the deputy otherwise ceases to be under a duty to discharge the functions in respect of which they were ordered to give security

Whilst no further premiums are payable, as stated on the Bond form and confirmation certificate no refunds are given. This as the bond has to remain in force for two more years before being cancelled by the Court, and therefore the insurers are still at risk for this period.

Only the Court will direct forfeiture of the Bond. An Order will be issued by the Court stating the amount of the loss. The amount will be paid to whoever the Court request