INSURANCE BROKER SURETY BOND
Like mortgage brokers, insurance brokers are required to obtain and maintain a surety bond in most states. Insurance broker surety bonds provide guarantee a minimum amount of protection to consumers and state governments that the insurance broker properly accounts for insurance premiums and as a protection against fraud or unethical behavior by the insurance broker. Likewise, insurance broker surety bonds also provide a modest alternative protection to insurers that sell insurance products through independent insurance brokers.
Like all surety bonds, the bonded insurance broker is liable to the surety bonding company up to the surety bond limit. Insurance broker surety bond premiums vary by the size of the insurance brokerage firm. Insurance brokers with less attractive credit experience are likely to pay more than other insurance brokers with better credit.
See our License and Permit Bond page for more.
Learn about Surplus Insurance Lines Broker Surety Bonds here.