What does a lost instruments bond cover?

A lost instruments bond primarily covers situations where a financial instrument, such as a money order, check, or bond, has been lost, destroyed, or stolen, and the issuer needs to ensure that payment will be made to the rightful party. This type of bond protects against potential claims that might arise from the replacement of the lost instrument.

In the context of uncashed money orders, if an individual loses their money order or it becomes unavailable due to unforeseen circumstances, the bond provides a guarantee that the issuer will pay the appropriate amount to the rightful claimant upon verification of the loss.

The other options, while relevant to various financial contexts, do not directly pertain to the specific function of a lost instruments bond. Default on securities sales and the delivery of contracted goods relate more to transactional agreements and performance guarantees. Preservation of a minor's assets involves guardianship and management of a minor's financial interests, which is a different area of financial responsibility and not specifically addressed by a lost instruments bond.