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.
An indemnity bond is a type of insurance policy. It ensures that you—not the bank—will be liable for any losses if the lost check is found and presented for payment. Otherwise, the bank could be liable for both checks.
You can purchase indemnity bonds through several insurance companies, however, they are often difficult to obtain. Contact your insurance broker for help. Be aware 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.
Last Reviewed: October 2020
Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.