Insurance Agent Adjuster And Broker Bonds

What is an insurance broker & adjuster bond?

Insurance broker bonds are legally binding agreements between three parties: insurance professionals (such as insurance adjusters, brokers, or agents), the state government agency responsible for regulating insurance agents in the respective jurisdiction, and a surety company.

The state agency is the obligee and establishes the obligations that the Principal (the insurance agent) must follow. The surety (also called bonding company) issues the bond guaranteeing the performance of the dealer.

Why do you need an insurance broker & adjuster bond?

In most states, insurance broker bonds are a part of the licensing requirements to operate as a broker or adjuster. When the surety company issues the bond, they provide the state agency a guarantee that the customers of a licensed insurer will receive payment for financial losses resulting from a violation of the statutes and regulations set forth by the broker license.

If the insurance broker fails to meet the obligations set out by the state agency, the surety will pay out damages up to the bond amount. The insurer is liable for the losses and is legally required to reimburse the surety company for any damages paid under the bond.

How much does an insurance broker & adjuster bond cost?

Insurance broker surety bond costs vary depending on the total bond amount and the premium rate. The state agency sets the required bond amount and the surety company determines the premium rate, which is the percentage of the total bond amount paid as the premium.

Premium rates for insurance broker bonds tend to range between .5% - 1% of the total bond amount. Insurance broker bonds do not require a credit check in most states––meaning that bad credit will not result in higher bond premiums. Other forms of insurance surety bonds such as surplus lines broker bonds usually require credit checks along with additional underwriting.

Below are the lowest premiums EZ Surety has issued for insurance broker bonds in popular states.

  • EZ Surety has issued insurance broker bonds in the State of California for premiums as low as $50.
  • EZ Surety has issued insurance adjuster bonds in the State of New Mexico for premiums as low as $100.
  • EZ Surety has issued insurance broker bonds in the State of New York for premiums as low as $50

Find the bond you need

All Insurance Agent Adjuster And Broker Surety Bonds


Don’t see your bond listed?

Contact us if your bond is not listed, we can write any bond!