You place the risks the standard market won't. The bond backs the obligation.
The bond behind your surplus lines authority
Brokers licensed to place coverage with non-admitted (surplus lines) insurers are generally required to carry a surplus lines broker bond. It guarantees that you will properly report and remit the surplus lines taxes and fees you collect and comply with your state's surplus lines law. The state can claim against it if you don't.
What a surplus lines broker bond guarantees
The bond protects the state — primarily guaranteeing the proper reporting and payment of surplus lines premium taxes and fees, along with compliance with surplus lines regulations. If the surety pays a valid claim, you reimburse it in full. It's a regulatory guarantee, not coverage for your business.
How much a surplus lines broker bond costs
The bond amount is set by the licensing authority. The premium you pay is a small percentage of that amount — typically around 1%–3% for applicants with reasonable credit, more for weaker credit — so a modest bond often costs a few hundred dollars a year. We market it to multiple surety companies to get you the best rate.
Required amounts vary by state
Surplus lines bond amounts are set by each state's insurance department and commonly range from $10,000 to $100,000+. We confirm your state's amount and filing requirements before quoting.
Surplus Lines Broker Bond requirements by state
The required amount and authority differ by state — and sometimes by city or county. We are licensed in all 50 states; request a quote and we will confirm the exact requirement that applies to you.
Frequently Asked Questions
What does a surplus lines broker bond cover?
It covers the state's loss if a surplus lines broker fails to report or remit the surplus lines taxes and fees owed, or otherwise violates surplus lines law. You reimburse the surety for any claim paid.
Who needs a surplus lines broker bond?
Brokers licensed to place business with non-admitted/surplus lines insurers in states that require the bond — which is most of them. The amount and filing vary by state.
How much does a surplus lines broker bond cost?
A premium that's a small percentage of the required bond amount, based on your credit and the state's required limit.
How do I get a surplus lines broker bond through Cory Washington & Co.?
Request a quote or contact our team. We confirm your exact requirement, market your bond across multiple surety companies that compete for it, and handle the filing. Cory Washington & Co. LLC is licensed in all 50 states.
All surety bond descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or bonding advice. Surety bonds are not insurance. Bond requirements — including amounts, obligees, and bond forms — are set by government authorities and other obligees and change over time; the information presented is general in nature and does not guarantee the availability, terms, conditions, or amount of any bond. Actual bond terms are governed by the bond form issued by the surety and the requirements of the obligee, and any bond remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds a surety, or issues a bond. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please confirm current requirements with the relevant authority and consult directly with a licensed professional at Cory Washington & Co. LLC.