Insurance Broker

Insurance Broker Information

An insurance broker bond is a type of license and permit bond which guarantees that insurance brokers account for insurance premiums they collect. It also guarantees that they will develop risk mitigation strategies faithfully and in accordance with state regulations. The insurance broker bond protects individuals who may be harmed by the actions of a licensed insurance broker. It is required by the state department of insurance upon applying for an insurance broker license and throughout the duration of the license. Cases in which a claim can be filed against an insurance broker bond include:
  • Collecting premiums for non-existent insurance policies
  • Manipulating rates and collecting higher premiums
  • Misleading clients to obtain insurance policies they do not need
  • Encouraging clients to lie about personal details in insurance applications
  • Encouraging clients to conceal and misrepresent their financial status in insurance applications
Insurance broker bonds are relevant to insurance brokers or agents, insurance adjusters, surplus lines brokers, and others. Furthermore, depending on the state you are based in, you may either have to obtain a bond which covers the whole agency (and includes all individuals) or have each individual bonded separately. Always make sure to check with your state’s department of insurance to know what kind of bond you need! The insurance broker bond is considered relatively low risk by bonding companies when compared against other commercial surety bonds due to the very strict licensing requirements. Because of this rates are good, and vary very little between surety companies. But not everyone will be accepted in the standard market. If, due to your credit report, you do not qualify for the standard market, we can offer you an insurance broker bond through our special bad credit surety bond program.

Over 125 years of combined experience

As a surety bond broker, we work for YOU not the surety company.  We are licensed nationwide and appointed by 25 surety companies so that we are able to offer the best solution for all surety bond needs.  We are a small organization that strives to make you feel like part of our family.   

Working with trusted insurance companies

Three party agreement

Surety Bond Definition: The definition of a surety bond is as follows: A surety bond is a binding agreement between three parties. This agreement sets forth a financial guarantee by one party ( “surety” ) to another party ( “obligee” ) that a third party ( “principal” ) will fulfill required obligations to the obligee, and that state, federal, and local laws and applicable regulations will be adhered to. Let’s examine each of the three parties.

Learn more about surety bonds

Bad Credit – Fast Approvals – Lowest Rates Available.

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  • Credit below 650 and/or have blemishes on credit report.
Average cost is 5-15% of the bond amount.
  • Available for all commercial bonds.

Why does credit matter? Applying for a surety bond is similar to applying for a loan. You are asking a surety company to back you financially. Reviewing credit is the best method for the surety to understand their risk. All sureties review credit as a view only and should have no effect on your credit score. While it is true that bad credit makes it harder to obtain a competitive quote, we are committed to making sure all of our customers have access to the best possible rates. While we can’t guarantee that we can provide a bond for the most extreme bad credit situations, we strive to make sure no stone is unturned! In other words, if you are insurable, we will get it written. Contact us today and let us put together an online quote for you that will exceed your expectations.