Surplus Lines Broker Bonds

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Surplus Lines Broker Bond Guide

Insurance brokerages that wish to offer surplus lines among their list of services may need a surplus lines broker bond. Learn how to navigate the bonding process and apply for the surety bond you need with this guide.

What Is a Surplus Lines Broker Bond?

A surplus lines broker bond is a type of license and permit surety bond used to protect the state and consumers from fraudulent activity by an insurance broker. This bond is necessary for selling surplus lines insurance in several states. 

Surplus lines surety bonds secure consumer investments if a company defaults and holds agents accountable for correctly reporting all collections. This is especially important in states where the Insurance Guaranty Association does not protect surplus lines policies.

Why Buy Your Bond From is the nation’s top surety provider and is licensed to issue surplus lines broker bonds in all 50 states. We offer the best service, fastest delivery and most affordable prices in the industry. 

Surplus Lines Broker Bond Requirements by State

Each state establishes unique bond amounts and regulations. Due to this, the bond costs and coverage requirements for surplus lines brokers vary greatly by state. 

For example, surplus lines brokers in California must post $50,000 surety bonds, while Ohio requires surplus brokers to post $25,000 bonds.

Select your state below for more information about surplus lines broker bonds in your area:

How Much Does a Surplus Lines Surety Bond Cost?

Surplus lines broker surety bond premiums are typically set at 1% of the bond amount. These bonds are a standard price for all applicants and don't require underwriting review.

However, the cost does vary by state. For example, surplus lines broker bonds in Georgia and Florida cost $500 for the required $50,000 bond coverage. Brokers in Maryland only need to purchase a $10,000 surplus lines bond at $100. 

Purchase your surplus lines insurance broker bond instantly through our secure online checkout. Select a multi-year term to save up to 25% on select bonds!

How Do Surplus Lines Broker Bonds Work?

These surety bonds bind three parties in a legal contract:

  1. Principal: The insurance broker who needs the surety bond to sell surplus lines
  2. Obligee: The state licensing authority imposing the bond requirement
  3. Surety: The provider issuing the bond and backing the broker

If a bonded broker fails to conduct business according to the contract terms, the bond protects harmed parties from financial loss. The principal must pay the surety back for any damages paid out up to the full bond amount.

Apply now to get your bond in under six minutes! 

Call 1 (800) 308-4358 to talk with a Surety Expert