Independent Adjuster Bond
- Licensing requirement for independent adjusters in a number of states
- Protects insurance companies and policy-holders
- Guarantees that independent adjusters will comply with Insurance Code
- Secures financial compensation for claims against the bond
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How much does an independent adjuster bond cost?
To get your independent adjuster bond you will need to pay a surety bond premium: a small percentage of the total amount of your bond.
The bond amount for independent adjuster bonds varies according to the state it is required in. Independent adjuster bonds in New Mexico are in the amount of $10,000, while in California they are $2,000, and in New York: $1,000.
To get your independent adjuster bond, you may need to pay as little as $100.
The exact cost of your bond will depend on your application. When the surety reviews your application it will look at your personal credit score, as well as other indicators of your financial situation such as your financial statements, liquidity, or assets. However, it’s your credit score that the surety takes into account most when setting the rate on your bond.
Typically, applicants who have a high credit score– one above 700 FICO– are offered low rates on their bonds. These “standard market rates” range between 1% and 3% of the total bond amount. See the table below to get an idea what your bond cost may be.
|State||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
Options for applicants with bad credit
If your credit score is low, or you don’t have a credit score at all, you can still get bonded with us. The only difference between having a high or a low score is the different rate that you will be offered.
Thanks to our Bad Credit Program you can get the bond you need and continue doing business. By working on your credit score and improving it over time, you will be able to get a better rate when you re-apply for your bond.
Rates for bad credit applicants are higher, due to the increased risk that sureties assume when bonding such applicants. What your exact rate will be under this program depends on your unique case, and will be determined when you request a quote.
Visit the Bad Credit Program page to find out more, get an exact quote and contact our surety bond professionals.
What is the purpose of the independent adjuster bond?
States that require the independent adjuster bond do so in order to secure protection to the insurance companies and policy-holders that adjusters work with. This bond also protects the state licensing board which issues adjuster licenses.
The adjuster has to obtain a bond as a guarantee that they will comply with state codes and regulations pertaining to their area of expertise, as well as do their job in a faithful, honest and professional manner. The conditions which the adjuster must comply with are also outlined in the bond agreement itself.
If the adjuster violates these conditions, through fraud, dishonesty, misrepresentation, deceit or other unfair practices, a claim can be made against the independent adjuster bond.
The claim is investigated by the surety and if it’s deemed legitimate, the surety proceeds with compensating the claimants. Once a compensation is paid out, the bonded independent adjuster has the legal obligation– as part of the bond agreement– to repay the surety for its backing.
How to get an independent adjuster license
Independent adjuster licenses are required in many states– not just in the three states that require adjusters to get a bond. Licensing requirements for adjusters differ in each state. Typically, to obtain your independent adjuster license, you will need to fulfill at least some of the following licensing requirements:
- Complete and submit your adjuster license application (different types of adjuster licenses may be available)
- Provide information regarding your business and yourself
- Present proof of previous experience
- Pass a pre-licensing education course
- Pass a licensing examination
- Pay an application and/or licensing fee
- Obtain an independent adjuster bond
For a list of all the requirements for becoming a licensed independent adjuster, you should contact your local licensing body. Often, that’s your local Department of Insurance.
To know more about getting your independent adjuster surety bond, get in touch with us at (866)-450-3412. Our surety professionals can help you with your application and provide you with more information regarding getting bonded. Don’t hesitate to call!