I purchased a cashier's check from the bank and then lost it. I want to purchase a replacement, but the bank says I first have to purchase an indemnity bond. What is this?

If you lose a cashier's check, the bank will require that you obtain an indemnity bond for the amount of the lost check before it will issue you a new one. This ensures that you—not the bank—will be liable for the second check. Otherwise, the bank could be liable for both checks.

Indemnity bonds can be purchased through several insurance companies; however, they are often difficult to obtain. Contact your insurance broker for help. Be forewarned that even after you present an indemnity bond, a bank may require you to wait 30–90 days before it will issue a replacement check.

If you lose a cashier's check given to you by someone else, you can ask that person to buy you another check. If they refuse, you could approach the bank with an indemnity bond.