Michigan Surplus Lines Broker Bond Guide
If you’re applying for a surplus lines broker license in Michigan, you’ll need this surety bond.
Bond Overview
- Purpose: To ensure brokers remit tax payments to the state and act ethically
- Who Needs It: All surplus lines insurance brokers in Michigan
- Regulating Body: The Michigan Department of Insurance and Financial Services
- Required Coverage: Varies based on tax liability
- Premium Rate: $10/$1,000 of coverage, $100 min
Learn all about the bond requirements and process in this guide.
What Is a Michigan Surplus Lines Broker Bond?
A Michigan surplus lines broker bond ensures that specialty insurance brokers follow state regulations and make surplus lines tax payments.
The Michigan Department of Insurance and Financial Services requires this bond as part of the licensing process for surplus lines brokers in the state.
How Much Do Surplus Lines Broker Bonds Cost in Michigan?
Most Michigan surplus lines broker bonds cost a flat rate of $10 per $1,000 of coverage, with a $100 minimum. Or, you can save 25% by selecting a multi-year term.
Bonds above $50,000 in coverage cost a small percentage of the total bond amount, typically 1–10%. Exact rates vary based on personal credit score.
Select your coverage amount below to buy or get a quote now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Surplus Lines Broker Bond?
All brokers that work with surplus lines insurers must be licensed and bonded with the Michigan Department of Insurance and Financial Services.
The surety bond ensures payment of surplus lines taxes and adherence to other licensing regulations.
How Do I Get My Bond?
With SuretyBonds.com, you can purchase up to $50,000 Michigan surplus lines broker bond coverage instantly. Just enter your information and checkout online.
If you need a bond greater than $50,000, you’ll need to apply for a free, personalized quote. Exact rates vary based on underwriting review.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Michigan Surplus Lines Broker Bond Work?
As with all surety bonds, a surplus lines broker bond creates a legal contract between three parties:
- Principal: You, the surplus lines broker filing the bond
- Obligee: The Michigan Department of Insurance and Financial Services requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for remitting taxes and upholding all applicable provisions of the Michigan Insurance Code.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your surplus lines broker bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
