For surplus lines brokers, this surety bond is often required prior to being able to place coverage with non-admitted insurers in a state. This surety bond offers some financial protection to consumers if for some reason the company defaults.

1. For surplus lines brokers, this surety bond is often
required prior to being able to place coverage with non-
admitted insurers in a state.
www.suretybondauthority.com

2. w w w . s u r e t y b o n d a u t h o r i t y . c o m
A surplus lines broker bond is often required by states for a company to be
able to sell surplus lines insurance. It is a guarantee to the state and the
consumer that the company will adhere to all state laws and regulations.
This offers some financial protection to consumers if for some reason
the company defaults.

3. w w w . s u r e t y b o n d a u t h o r i t y . c o m
A surplus lines broker bond is like other surety bonds. There are three key players:
The Obligee is the agency that requires a company to obtain a surplus
lines broker bond. In many states, the company will not be issued a
license without first purchasing this bond.

4. w w w . s u r e t y b o n d a u t h o r i t y . c o m
A surplus lines broker bond is like other surety bonds. There are three key players:
The principal is the business or the individual that is required to
obtain the surplus lines broker bond. They will be responsible for
maintaining the bond coverage each year.

5. w w w . s u r e t y b o n d a u t h o r i t y . c o m
A surplus lines broker bond is like other surety bonds. There are three key players:
The surety is the agency that provides the financial backing for the
surety bond. They will make a payment if a claim is made against the
bond.

6. w w w . s u r e t y b o n d a u t h o r i t y . c o m
If your company fails to meet the terms of the bond, a claim
can be made, and they will be compensated if the surety
company finds that they have suffered a loss due to
misconduct or default of the company.
The company will have to repay the surety company for any
amount that is paid out of the bond to the complainant.

7. w w w . s u r e t y b o n d a u t h o r i t y . c o m
Each state sets its requirements for surplus lines broker bonds. You will pay a
premium that is based on that amount.

8. www.suretybondauthority.com
https://suretybondauthority.com/surplus-lines-broker-bond/
800-333-7800