Injunction Bond Guide

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What is an Injunction Bond?

An Injunction Bond is a Court Bond that ensures a defendant is compensated for any losses or damages incurred due to a wrongful injunction. An injunction is a judicial order that compels an individual or entity to either perform a certain act or refrain from engaging in specific conduct. 

An example of how an Injunction Bond works can be found in the situation Michelle, one of our clients, found herself in. 

Michelle’s neighbor, Tracy, started building a fence that extended onto Michelle’s property. Seeing this violation of the property line, Michelle filed a lawsuit against Tracy, along with a temporary injunction for the latter to halt the construction of the fence. That’s when Michelle reached out to us looking for the right surety bond to ensure Tracy's compensation for any damages resulting from the halting of the fence’s construction. This could include decay of building materials, additional labor costs or reduced property value.

Who Needs an Injunction Bond?

Plaintiffs who file temporary injunctions are usually required by a judge to post an Injunction Bond. By doing this, should the injunction prove to be unnecessary and not become permanent, the defendant is sure to be compensated, either by the plaintiff directly or by filing a claim against the Injunction Bond.

How to Obtain an Injunction Bond

You can get your Injunction Bond by following these steps:

  1. Determine the required bond amount: This amount will be set by the court and should cover any losses the defendant may incur due to the injunction. 
  2. Complete the application process: Fill out our Court Bond Application form, Personal Financial Statement and Credit Release Form.
  3. Undergo financial review: We will make a quick assessment of your financial situation to determine the risk involved in issuing the surety bond.
  4. Pay the bond premium and sign the indemnity agreement: Once approved, it’s just a matter of paying the premium and signing the agreement. We work hard to ensure our clients get the most competitive rates in the industry.
  5. File the bond with the court: After obtaining the bond, file it with the court to enable the injunction process.

How Much Does an Injunction Bond Cost?

The cost of an Injunction Bond is calculated as a percentage of the bond amount determined by the court. That percentage is lower if you have a strong financial history and a good credit score. In the end, you can expect your premium to be between 1% and 10% of your bond amount.

Frequently Asked Questions

Yes. We provide the lowest rates possible as a result of the large volume of bonds we write.

You must contact us immediately, as we have a team of claim specialists here to find a resolution for you. Keep in mind, it is crucial that you work with an expert in the surety industry. Learn more about how to ensure you choose the proper bond company.

You can take a look at our full list of court bonds.

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