You hold plan funds for others. The bond stands behind you.
A licensing bond for third-party administrators
Third-party administrators — firms that handle claims, premiums, or benefit-plan funds for insurers, employers, or plan sponsors — are often required to carry a TPA bond to be licensed. It guarantees that you will handle those funds honestly and comply with your state's TPA law. The state or the parties you administer for can claim against it if you don't.
What a TPA bond guarantees
The bond protects the state and the parties whose funds you handle — guaranteeing the proper handling and accounting of premiums, claims, and plan money, and compliance with TPA licensing law. If the surety pays a valid claim, you reimburse it in full.
How much a TPA 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.
Requirements vary by state
TPA bonding and the required amount are set by each state's insurance department, and the figure can scale with the volume of funds you administer. We confirm your exact requirement before quoting.
Third-Party Administrator (TPA) 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 TPA bond cover?
It covers losses from a third-party administrator's mishandling of premiums, claims funds, or plan money, and violations of TPA law. You reimburse the surety for any claim paid.
Who needs a TPA bond?
Firms administering insurance or benefit plans (claims, premiums, or funds) in states that license and bond TPAs. Requirements and amounts vary by state.
How much does a TPA bond cost?
A premium that's a small percentage of the required amount, based on your credit.
How do I get a third-party administrator (tpa) 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.