Texas Insurance Broker Bond

All businesses and individuals who want to operate as insurance brokers in Texas must undergo the licensing process of the state Department of Insurance. In order to get your Texas insurance broker license, you have to post a surety bond. You have to present it to the Department in the official bond form.

The bond requirement is there to guarantee your compliance with state laws. It protects your customers from fraud and misuse you might engage in, such as unethical activities or failure to deliver the correct services.

The current requirement for Texas insurance brokers is a $25,000 bond. This is the bond amount that you have to post. Your bond premium is a few percentage points of this. If your finances are in good shape, your bond price is likely to be 1%-5% of this amount.

Your exact bond price depends on your personal and business finances. Your surety needs to take a look at your personal credit score, business financials, assets and liquidity, as well as industry experience. If your overall profile is stable, you can expect to pay less for your bond.

If you need more information on the bond cost formation, our surety bond cost page offers a thorough overview.

It can be tough to get the bond you need with problematic finances. Lance Surety Bonds operates its Bad Credit Surety Bonds program to help insurance brokers with low credit scores, tax liens, bankruptcies, or civil judgements.

The typical bad credit bond rates are between 5%-10%. The price is higher, since the bonding risk is increased. With us, however, you’ll still get a great bond price. We partner with a number of trusted A-rated, T-listed surety companies. We can select the best bonding option for your situation.

It’s not difficult to start your bonding. Just apply online to get a free bond quote right away. For your exact bond price, you have to submit your full application together with all paperwork. Then we will deliver it in no time.

Do you need more information about the bonding process? You can consult our How to Get Bonded page, which is a detailed resource on the topic.

Still have questions?,You can call us at (877) 514-5146. Lance Surety Bonds’ experts will be happy to help you.

Your insurance broker bond is not insurance for you. Instead, it provides protection for your customers against any illegal actions on your side. Such cases include coercing customers to obtain an insurance, selling inapplicable or inappropriate insurance products, and not fulfilling your contractual obligations. If you transgress from state rules, you can get a bond claim. This is how an affected party can get a compensation.

The maximum reimbursement that can be given for proven claims is the amount of your bond - $25,000. Initially your surety covers the expenses in case of claims. However, you are liable to repay it fully after that. This means that bond claims should be avoided as much as possible.