Who Needs an Indiana Insurance Broker Bond?

This bond may be required for:

• Independent insurance brokers selling policies from multiple carriers

• Surplus lines brokers dealing with non-standard or high-risk insurance markets

• Insurance professionals handling premium payments on behalf of clients

• Brokerage firms employing licensed brokers

Not all brokers are required to have a bond, but it may be mandated based on licensing status, past financial history, or the type of insurance products being sold. If the Indiana Department of Insurance determines that you need a bond, you must secure one before receiving or renewing your broker license.

How Does the Indiana Insurance Broker Bond Work?

This bond protects the public and the state by ensuring that brokers follow Indiana insurance laws. Here’s how it works:

1. You obtain the bond as part of your broker licensing process.

2. The bond guarantees compliance with state regulations and ethical business practices.

3. If a valid claim is filed, such as for fraud, misrepresentation, or mishandling of client funds, the surety company may compensate the affected party up to the bond amount. However, you are ultimately responsible for reimbursing the surety for any amounts paid out.

Cost of an Indiana Insurance Broker Bond

The cost of this bond depends on:

• The required bond amount set by the Indiana Department of Insurance

• Your credit score and financial history

• The surety company’s underwriting criteria

Generally, the bond premium ranges from 1% to 5% of the total bond amount. Well-qualified applicants with strong credit may secure lower rates, while those with financial challenges may pay a slightly higher percentage.

How to Obtain an Indiana Insurance Broker Bond

The process to get your bond is simple and fast:

1. Confirm the bond requirement – Check with the Indiana Department of Insurance to determine if a bond is required and the necessary amount.

2. Request a quote – Provide details about your brokerage business and financial background.

3. Submit your application – Complete the necessary paperwork and provide supporting documents if needed.

4. Receive your bond – Once approved, you’ll get the bond to submit with your licensing application.