Overview of California Insurance Broker Bond Requirements

To ensure that the interests of insurance buyers in the state are well-protected, California requires that insurance brokers maintain a valid surety bond when applying for or renewing their license. More specifically, insurance broker are required to comply with the provisions set forth in the Insurance Code, Sections 1662-1665. The bond requirement does not pertain to life insurance brokers.

A violation of the bond agreement can lead to a claim against the broker. Claims can go as high as the total amount of the bond, which in this case is $10,000. If the broker fails to reimburse the claimant, the surety must do so, which ensures that the claimant will always be reimbursed for their losses.

Insurance brokers should be aware, however, that they have the ultimate responsibility to make good on their claims, even if the surety covers them at first.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

If you still have questions or need any assistance from us, our agents will gladly respond at (866)-450-3412.

California Insurance Broker Bond Cost

The total amount of $10,000 refers to the bond’s penal sum, but it is not the price brokers need to pay. Premiums are calculated after an evaluation of the applicant’s credit score, financials and experience. Below you can find a breakdown of expected premiums based on your personal credit score, which is the most important factor during the underwriting process.

Surety Bond Cost Based on Credit Score
State and Bond Name Surety Bond Amount Above 700 Between 650-699 Between 600-649 Below 599
California Insurance Broker Bond $10,000 $100-$150 $100-$300 $250-$500 $500-$1,000

Find out more information, including useful cost-saving tips, with our surety bond cost guide.

Information about our Bad Credit Program

Applicants can get bonded regardless of their credit score. The only difference is the higher premium. However, you needn’t worry about finding a cosigner or posting collateral.

Our Bad Credit Program is designed so that those with a low credit score or other credit issues can still get bonded. You can rely on our agents for expert advice on strengthening your application.

Start Your Application Today!

You are just a step away from getting your California insurance broker bond. All it takes is five minutes to complete our simple one-page application. After submission, our agents will contact you with a free bond quote via email or phone (depending on which option you chose).

After completing the necessary paperwork (and we do most of it for you) we will mail your bond. Feel free to request digital copies via email.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

You can have a look at the bond form to use as reference:

California Insurance Broker Bond Form

Understanding Bond Claims

It’s important to understand California’s Insurance Code and all other applicable regulations so you can avoid claims against your bond. Claims can be costly, time-consuming and even lead to a lawsuit. Some applicants with claims might not be able to get bonded for some time in the future.

One of the biggest offenses is to practice without a valid license, so always make sure you renew your license on time.

If you enter a dispute with a client and believe you haven’t violated the law, you can contact the surety and ask for legal assistance. The best course of action if you decide to go to court is to keep impeccable documentation regarding your interactions with the client.

Your bond can be cancelled by the surety by giving a 30-day notice to the Commissioner. However, you remain liable for illegal actions prior the bond’s expiration date.