Escrow Company Bond
An escrow company bond is a license and permit surety bond often required of individuals or companies who provide escrow services.
Key Highlights
- This bond protects title and escrow agents from financial loss due to fraudulent activities, including theft of escrow funds.
- Crime coverage through other insurance policies may not protect escrow funds from theft or meet lenders' needs.
- Anyone who wants to open or operate an escrow agency — or act independently as an escrow agent — in certain states must obtain an escrow company bond.
How do I purchase an escrow company bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue escrow company bonds in each of the 50 states. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
Escrow Company Bond FAQs
An escrow company bond is a license and permit surety bond often required of individuals or companies who provide escrow services. An escrow agent is a person who engages in the business of receiving escrows for deposit or delivery, either in person or through the internet. This bond protects title and escrow agents from financial loss due to fraudulent activities, including theft of escrow funds. While title agents may have crime coverage through other forms of insurance policies, many times it will not protect escrow funds from theft or meet lenders' needs.
An escrow company bond acts as a financial safety net for clients, protecting them from potential losses due to fraud, mismanagement, or other forms of misconduct by the escrow company. If a client suffers harm because the company fails to fulfill its legal or contractual obligations, they can file a claim against the bond. If the claim is validated, the surety company that issued the bond will compensate the affected party up to the bond’s limit.
However, the escrow company is ultimately responsible for repaying the surety for any claims paid out. This system promotes accountability and trust in the escrow industry by ensuring that companies are financially liable for their actions.
An escrow company bond is required for businesses or individuals that operate as escrow agents or companies in states where bonding is a legal licensing requirement. These bonds are essential for ensuring that escrow professionals handle funds and property ethically and in compliance with state laws. Anyone who wants to open or operate an escrow agency — or act independently as an escrow agent — in certain states must obtain this bond before they can legally conduct business.
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