Texas Public Adjuster Bond

Texas law defines a public adjuster as a person “who, for direct, indirect, or any other compensation acts on behalf of an insured, another Public Insurance Adjuster; or a person who advertises, solicits business, investigates, settles, or adjusts or advises or assists an insured with the settlement of a claim or claims for loss or damage under any policy of insurance covering real or personal property, or holds himself or herself out to the public in negotiating for, or effecting the settlement of a claim or claims for loss or damage under any policy of insurance covering real or personal property.”

If you fit this definition, you will be required to get licensed and bonded.

The bond’s penal sum is $10,000. This means that a claim against your bond cannot exceed that amount.

But much like insurance, surety bonds are paid in premiums and need to be renewed, usually annually or biannually. The premium depends on your personal credit score. For a Texas public adjuster bond, most applicants will pay a flat rate of $100.

You can find more information on our “What Does a Surety Bond Cost?” page.

The application process is simple and hassle-free. All you need to do is submit our online application. You’ll receive a free bond quote, after which you need to sign an indemnity agreement, fill out the bond form (though we do most of it for you), and we’ll proceed with getting the surety’s signature.

Your bond will usually be ready in as little as one or two business days. A hard copy will be mailed to you but feel free to request digital copies for your archives via fax or email.

Surety bond claims should be avoided at all costs. Not only can your liability reach $10,000, but you can also get your license revoked.

This is why it’s essential that you understand Texas law pertaining to public adjusters, and conduct your business in accordance with it. If you are notified of a violation, you must repay the compensation you owe prior to it turning into a claim.

You must also make sure to always renew your license and bond on time. The bond does not need a renewal certificate, but you must pay your premiums on time in order for it to remain valid year after year. The bond can be cancelled with a 30-day notice, but you still remain liable for violations committed prior to that.

The licensing process will vary depending on whether you are applying as a resident or nonresident public adjuster. If you are not exempt, you’ll need to pass either of two examinations: a TDI certified course and approved final examination, or the Pearson VUE exam.

You will then need to pay applicable fees and send your application to the Texas Department of Insurance– either on paper or electronically.