America's Preferred Provider for All Types of Surety Bonds

Call Us: 888-278-7389

 
 
 
 
Request a Quote Email Us Viking Bond Service Video Page
 

Surplus Lines Broker Bond

If you are an insurance agent and want to offer surplus lines to your clients, you may be required to obtain a surplus lines broker bond first. This bond is also referred to as a surplus insurance broker bond or a surplus lines agent bond. Many states require this bond to ensure that any broker selling surplus lines follows all applicable laws and regulations to protect their clients' investments.

What is a Surplus Lines Broker Bond?

A surplus lines broker bond is a surety bond required before brokers can legally offer surplus lines to their clients. A bond is a risk-management tool that protects the broker's clients from potential broker fraud or incompetence. The surety bond establishes a financial incentive for the broker to abide by all relevant laws and regulations. It also creates a mechanism for clients to recover damages if they occur.

How Does a Surplus Insurance Broker Bond Work?

Surplus insurance broker bonds, like any type of surety bond, are legal contracts between three essential parties:

  • The bond principal is the bonded insurance broker.
  • The bond obligee is the government agency that requires the bond.
  • The bond surety is the insurance company that underwrites the bond.

If a client alleges that their insurance broker caused them damages on a surplus line through fraud or incompetence, they can file a claim against the bond. The surety then thoroughly investigates the allegations. If the surety finds in the client's favor, they will pay the full damages up to the bond's total value. However, if the claim lacks merit, it will be dismissed.

Who Needs a Surplus Lines Broker Bond?

All resident and non-resident surplus line brokers and agencies must be bonded if their state regulations require it. Many states require these bonds, including Alabama, Arkansas, California, Florida, Georgia, Maryland, Rhode Island, and Virginia. If you are unsure whether you need a surplus lines broker bond, the surety experts at Viking Bond Service are here to help you figure it out.

How Much Does a Surplus Lines Broker Bond Cost?

Surplus lines broker bonds, like other surety bonds, cost a tiny fraction of the bond value. This value is established by the state(s) where you do business, and the required bond values may vary widely from one state to the next. The bond's premium typically ranges from 1-5% of the bond value, depending upon your credit score. Naturally, those with better credit pay a lower premium.

How Can I Get a Surplus Lines Agent Bond?

At Viking Bond Service, we strive to make it fast and hassle-free to obtain your surety bond. Please complete our online application today. We'll send you a competitive surplus lines broker surety bond quote ASAP. Contact us online or call 1-888-2-SURETY (1-888-278-7389). We're here to answer your questions!

Free Quote
No Obligation

Name: First Name: Last Name: Phone: Email: Type of bond needed:
Amount: Bond State:
Are You (Choose): How did you find us?: Message Subject: Comments:

Viking Bond Service does not share or release email addresses, phone numbers or ANY other personal information to unauthorized third parties. Information is used for underwriting purposes only. View our Privacy Policy

Get Started:

Call Us: (888-278-7389)
More About Surety Bonds:
How are Performance Bond premiums figured?

Many variables go into figuring Performance Bond premiums. Read about what variables are considered and why premiums can vary so widely.

Bonded & Insured 101 | Viking Bond Service

Learn what bonded & insured means, how to get bonded, and which bonds are right for your needs. Find out about the bonding process and how to become bonded & insured.

Cyber Liability Coverage for Your Business

If you've considered obtaining cyber liability coverage, read on to learn more about how to get it.

How do Performance Bonds work?

Performance Bond processing is typically more involved than Commercial but they still work basically the same. Learn about how Performance Bonds work.

FaceBook LinkedIn Twitter Manta FourSquare Yelp

Get Started:

Call Us: (888-278-7389)

Member:

Viking Bond Service BBB Business Review NASBP Servis Key Surety Association of Arizona

Get Started:

Call Us: (888-278-7389)