Court Bonds

Securing A Supersedeas Bond: Important Advice


A company’s liability insurance may cover a supersedeas bond. This will turn out to be critically important information if you ever seek to win a lawsuit on appeal.

 Appealing A Lost Lawsuit: Supersedeas Bond Needed

 Every business dreads lawsuits—and lawyers dread losing them, While the possibility of winning on appeal can be tantalizing, financing the appeal process can be daunting. Picture the winning plaintiff’s eagerness to execute the judgment—and collect the funds awarded?

To defer payment during the appeal process, the court must be petitioned for a “stay of enforcement.” Before granting that, the court typically requests a supersedeas bond—and sets the amount. The bond acts as a guarantee that if the appeal is lost, the full amount of the original judgment—and sometimes more, will be paid. This is why securing a supersedeas bond can become a major financial hurdle in the appeal process. As Anderson Kill  points out:

When the court issues the stay of enforcement, it also determines the amount of the required supersedeas bond, to ensure the judgment is paid if the appeal is unsuccessful. Generally, the cost of such a bond will include the whole amount of the judgment, costs on appeal, interest, and sometimes even additional damages for the delay. In cases with multimillion-dollar awards at stake, this requirement can devastate a company. 

Note, however, that there is a likelihood that the general liability insurance covering the business —and providing the defense in the lawsuit—will also cover the supersedeas bond. Anderson Kill advises:

 Many liability insurance policies include language requiring them to furnish bonds. Even where the policy language does not explicitly provide that the insurance company must furnish a supersedeas bond, some courts have held that posting the bond could constitute a necessary cost of defense, and would therefore be covered by a typical liability policy that covers defense costs.

 Some insurance policies, however, specifically state that the insurance company must pay for the cost of obtaining the bond and any other incidental costs involved with procuring the bond, but will not be required to furnish it, i.e., act as the surety or provide the collateral for the bond.

Satisfy the Court: Secure the Supersedeas Bond Quickly

A court ordered supersedeas bond, sometimes referred to as an appeal bond, must be secured and filed quickly to meet the timeline set by the court. As a leading, national provider of court bonds, Colonial Surety Company can help—whether your case is big or small.


Uniquely, Colonial offers direct and digital service. Colonial is the insurance company. We make it easy to obtain bonds efficiently. At Colonial, the steps to securing a supersedeas or appeal bond are: get a quote online; fill out your information; satisfy underwriting requirements; and enter your payment method. Once approved, you can print or e-file the bond right from court, your office—or anywhere. It’s that simple.


Obtain a Supersedeas or Appeal Bond Now.

Support for Busy Attorneys

Now more than ever, time is money. Colonial gets that. To help, we offer a unique Partnership Account for Attorneys.

This free business service provides user-friendly client management dashboards to coordinate, view, complete and e-file the court and fiduciary bonds your clients need. Access Colonial’s robust portfolio of direct, digital court and fiduciary bonds —and save time—with our user-friendly proprietary management tools too.

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Founded in 1930, Colonial Surety Company is a direct seller and writer of surety bonds and insurance products for a wide range of industries and professions. We proudly use our experience—plus technology—to give people and businesses instant, easy, direct and digital access to a broad portfolio of bond and insurance products.

Colonial is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed, and licensed in all 50 states, the District of Columbia and most U.S. Territories.