Surplus Lines Broker Surety Bonds are required for insurance companies, agents and brokers that offer surplus lines coverage to ensure adherence to all applicable laws and regulations.
Surplus lines coverage entails the use of an out-of-state insurer in the event that in-state carriers will not accept the risks attributed to a particular policy. Surplus Lines Broker Surety Bonds permit this third-party coverage, and ensure that the insurance company, broker or agent conducts business in an ethical and transparent manner. They also protect their clients against potential acts of fraud and misrepresentation of services.