Public Adjuster Surety Bond
Public adjusters are independent insurance professionals employed by individuals with insurance claims to help them maximize the settlement amount of insurance claims. Most states require all public adjusters to obtain a public adjuster surety bond. The bond is a prerequisite for getting your license to conduct business.
What is a Public Adjuster Surety Bond?
A public adjuster bond is a type of surety bond that guarantees the public adjuster will abide by all applicable laws and regulations and fight for the best interests of their clients. The surety bond is a legal contract between three parties:
- The Principal – The public adjuster required to get the bond is the principal.
- The Obligee – The state agency that requires the public adjuster bond is the obligee.
- The Surety – The entity that issues and backs the public adjuster surety bond is the surety.
Public adjuster bonds promote upstanding behavior throughout the industry by holding adjusters accountable for their misconduct. The bond provides a financial incentive to conduct business ethically per industry laws, regulations, and standards. Surety bonds like this one also create a process through which anyone harmed by a public adjuster can seek a settlement by filing a claim against the bond. As the principal, the public adjuster must accept financial liability for all valid claims filed against the bond.
How Does a Public Adjuster Bond Work?
If someone feels that a public adjuster has stepped outside the bounds of acceptable behavior, they may file a claim against the public adjuster bond for an amount equal to the damages caused. The surety will then investigate the claim and, upon validating the details, will settle it in full. Then, the surety will collect the settlement amount from the public adjuster with interest and fees.
Who Needs a Public Adjuster Bond?
Most but not all states require a public adjuster to have a professional license. Surety bonds are a common license requirement, and a growing number of states nationwide are mandating public adjuster bonds. You will need to prove you have the required bond in the amount required by state regulators before being granted a license to do business.
What States Require Public Adjuster Bonds?
In recent years, the value of public adjusters has gained recognition, along with the need for a guarantee of the adjusters' ethical conduct. Currently, the following 46 states and DC require public adjuster bonds.
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wyoming
How Much Does an Insurance Adjuster Bond Cost
The cost of a surety bond depends on two factors:
- How large the bond must be. The cost will be a small percentage of the bond amount. A $10,000 bond will typically cost just $100 - $500.
- Your credit standing. People with solid credit will pay less. People with challenged credit or a spotty financial history will pay slightly more.
You will pay once to activate the bond. You will also need to keep the bond active to keep your public adjuster license in good standing. That means renewing the insurance adjuster bond on an annual basis. During renewal, the surety will reevaluate your credit and adjust the premium accordingly. The largest cost, those associated with bond claims, can be avoided by following the letter of the law at all times.
Can I Get a Public Adjuster Bond With Bad Credit?
A surety company evaluates risk by reviewing your credit score. However, at Viking Bond Service, we understand that you are far more than your credit history and may have encountered a run of bad luck. We are eager to help you turn your financial prospects around and to help you get bonded. We have established a bad credit surety bond program to help you get your public adjuster bond for the lowest price.
How Can I Get a Public Adjuster Bond?
At Viking Bond Service, we make it easy to get your surety bond. Simply complete our online application, and we'll get you a competitive quote ASAP. We aim to make bonding easy and accessible for all. If you have questions, contact us online or call us at 1-888-2-SURETY (1-888-278-7389).
Quotes are available for clients with low credit. In many cases, a bond is not out of reach simply due to bad credit.
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