What Is a Georgia Public Adjuster Bond?
Want to work as a public adjuster in Georgia? All public adjusters in the state must get a Georgia public adjuster license from the state’s Office of Insurance and Safety Fire Commissioner. As a part of the licensing requirements, you need to post a Georgia public adjuster bond.
The goal of public adjuster bonds is to provide an extra layer of safety for the clients of public adjusters. In case you don’t abide by state laws that govern your trade, you can face a bond claim. Surety bonds ensure that fair compensation– in the form of a claim– can be paid to any victims of misconduct by public adjusters.
Like other surety bonds, your Georgia public adjuster bond is a contract between three entities. The principal is your public adjuster business, while the obligee is the Georgia Office of Commissioner of Insurance that requires the bond. The entity that provides the bonding is the surety.
Questions about Public Adjuster Bond in Georgia
Who needs to obtain a Georgia public adjuster bond?
Public adjusters represent their clients in insurance claims. All public adjusters in Georgia need to obtain a bond as a part of their licensing procedure with the Office of Insurance and Safety Fire Commissioner. This ensures their compliance with the Georgia Insurance Code, and provides an extra layer of security for adjusters’ clients. Adjusters must use the official bond form in their licensing application.
How much does a Georgia public adjuster bond cost?
Georgia public adjusters are required to post a $5,000 bond. This is the bond amount, which is different from the actual price you need to pay. The bond premium is, in fact, only a fraction of this amount. If your finances are stable, the percentage is usually between 1% and 3%. Thus, you may need to pay about $100-$150 for your bond.
|Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Georgia Public Adjuster Bond||$5,000||$100||$100-$150||$150-$250||$250-$375|
When you apply with a surety, they have to take a close look at your personal and business finances. The surety needs to assess how risky it is to provide you with a bond. The most important factors are your personal credit score, business finances, and assets and liquidity. If your profile is stable, you can expect to pay less for the bond.
Consult our surety bond cost page if you want all the facts about how your surety price is calculated.
Can I get bonded with bad credit?
If you’re struggling with problematic finances, you still have a chance to get bonded. Lance Surety Bonds runs its Bad Credit Surety Bonds program to help applicants with low credit scores, tax liens, bankruptcies, or civil judgements to get the bond they need.
Your bond rate is likely to be between 5% and 10%. The price is higher in order to compensate for the increased risk in the bonding. Since we work with a number of A-rated, T-listed surety companies, we can still offer you top bonding rates that match your particular case.
How do I get a Georgia public adjuster bond?
Ready to get bonded? Just apply online for a free Georgia public adjuster bond quote today. Once you complete your full application, we will deliver your exact bond price as well.
Our How to Get Bonded page is an excellent resource if you need further information about the bonding process.
For any questions, just call us at (877) 514-5146. Lance Surety Bonds’ specialists will be happy to assist you.
How are bond claims handled for public adjusters?
It’s important to understand the difference between insurance and your public adjuster bond. Unlike the former, the bond does not protect your business. It’s required by state authorities in order to protect your clients.
If you don’t follow the law, you could face a claim on your bond. If it’s proven, the affected party can get compensation up to the penal sum of your bond. The surety covers the costs at first, but you need to reimburse it fully afterwards.
Besides the financial harm, claims also can affect your reputation, and can prevent you from getting bonded in the future. The wisest course of action is to avoid them as much as possible.