Insurance Agent Bond

An insurance agent bond is a form of insurance purchased by an insurance broker.
Key Highlights
- An insurance agent bond ensures strict compliance with state insurance laws and protects customers from any illegal or unethical actions on the part of the broker.
- The bond provides a layer of trust and accountability, reinforcing the agent’s commitment to operate with integrity and professionalism.
- The exact amount of the surety bond and its specifications are determined by the state in which the business is located.
How do I purchase an insurance agent bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue insurance agent 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.
Insurance Agent Bond FAQs
An insurance agent bond, also known as an insurance broker bond, is a form of insurance purchased by an insurance broker. In addition to requiring insurance brokers to be licensed, most states also require insurance brokers to be bonded. The exact amount of the surety bond and its specifications are determined by the state where the business is located. An insurance bond ensures strict compliance with state insurance laws and protects customers from any illegal or unethical actions on the part of the broker.
When an insurance agent applies for a license, the state may require them to purchase a bond as a condition of licensure. This bond serves as a financial guarantee that the agent will follow all applicable laws and regulations. If the agent commits fraud, misuses client funds, or otherwise violates their professional obligations, a claim can be filed against the bond. If the claim is valid, the surety company will compensate the harmed party up to the bond’s limit. However, the agent is ultimately responsible for repaying the surety for any amounts paid out.
The cost of an insurance agent bond typically ranges from $100 to $500 per year, depending on the bond amount, your credit score, state regulations, and the bond term.
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