Just like each state has its own law, so do tribal nations. Understanding this is key to an effective relationship between sureties, agents, contractors, and tribal nations. Here are some key factors your surety is taking into consideration when underwriting bonds for tribal nations.
1. Tribal nations are sovereign nations, meaning they have the authority to enact their own laws and have their own dispute resolution mechanisms.
2. A sovereign nation has sovereign immunity from suit, meaning they have immunity from suit in U.S. federal and U.S. state courts.
3. Every tribe is different and unique and although the process may be similar, there is no “one-size-fits-all” waiver/language.
4. Consider the sophistication of accounts when working with tribal nations (knowledge of tribal employment rights office/employment laws, taxes, and other tribal laws which may be applicable).
5. Absent a sovereign immunity waiver, a tribal entity is even immune from suit in its own tribal court.
6. Waivers of sovereign immunity are key when securing surety bonds.
7. Performance and payment bonds must be tailored to address:
This website is general in nature, and is provided as a courtesy to you. Information is accurate to the best of Liberty Mutual’s knowledge, but companies and individuals should not rely on it to prevent and mitigate all risks as an explanation of coverage or benefits under an insurance policy. Consult your professional advisor regarding your particular facts and circumstance. By citing external authorities or linking to other websites, Liberty Mutual is not endorsing them.
