General Questions
What is a Private Detective Bond?
A private detective bond is a surety bond between the state of Massachusetts, the Principal (investigator or detective agency) and the surety company. The bond is a guarantee that the Principal understands and will comply with all laws and regulations pertaining to private investigation, will cooperate with government agencies, and will not defraud customers, violate privacy agreements, or act to obstruct judicial procedures.
How do I know if I need a Private Detective Bond?
If you are applying for a private detective license in the state of Massachusetts, you are required to submit proof of your private investigator bond with your license application.
What should I do in the event of a claim against my Private Detective Bond?
We advise that you explore all options to resolve any issue that could result in a claim before it is filed. If you are unable to do so, the surety will handle any remittance of damages to your client, at which point you will be liable for full repayment to the surety. In addition, a claim is a mark against the broker and could interfere with license renewals, not to mention the outward reputation of the broker and associated agency. Read more about wrongful claims below.
What if I have a false claim against my bond?
If you feel the claim is false or exaggerated, your surety will complete all due diligence and deny the claim. In this case, you can continue your business as usual. Claims that are found to be invalid against your bond will have no effect on your licensure, bond, or business operations.
How can I avoid claims against my a Private Detective Bond?
It should be a top priority to avoid claims against your bond at all costs. If a claim is filed, the principal is obligated to reimburse the surety for the entire amount that was paid out. If there is an issue that may result in a claim, it is advised that the bond-holder do whatever they can to resolve the issue before this becomes the case. Your surety bond is a promise to fulfill your obligations and duties, as well as follow the law. A claim against this bond indicates that the bond-holder knowingly and intentionally violated this agreement. If you are operating in compliance with this agreement, the potential claim may stem from a miscommunication with a client. It is very important to clear up this miscommunication before the claim is submitted. The Principal is legally responsible for all valid claims submitted against them.
Your surety will give you the chance to resolve the claim. If you fail to resolve the claim, your surety will issue repayment, and you will be obliged to reimburse the surety for damages.