Insurance producer & broker bonds
Some states and license types require a licensed insurance producer or broker to carry a surety bond. Whatever your state and license call for, you can get bonded online in minutes through our partner Propeller: pick your bond, get approved, pay, and it lands in your inbox.
What is an insurance producer bond?
An insurance producer bond (often called an insurance broker bond) is a surety bond some states require a licensed producer or broker to post to get or keep a license. It's a three-party guarantee between you, the state insurance department, and the surety that backs it. It is not insurance that protects you. It protects the state and the public that you'll follow insurance law and handle client premiums and funds honestly, and you repay the surety for any valid claim paid against it. If the whole idea of a bond is new, our overview of what a surety bond actually is walks through how it works.
Does Arizona require an insurance producer bond?
Generally, no. Arizona does not require a standard resident insurance producer to post a surety bond to hold the license. A resident insurance broker license carries a small bond (around $1,000), and certain roles such as bail bond agents have their own requirement (about $10,000), while surplus lines brokers and a few other license types can carry bond or financial requirements. So if you hold a standard Arizona producer license, you most likely don't need a bond, but your exact license type is what settles it. Confirm yours with the Arizona Department of Insurance and Financial Institutions (DIFI). We're a brokerage, not a licensing authority, so treat this as a starting point, not legal advice.
Requirements vary by state
Producer and broker bonds are state-specific, and the requirement usually applies to brokers or surplus lines agents rather than every producer. Amounts range widely, commonly from about $2,000 up to $100,000, and some states tie the figure to the premium volume you handle. Illinois, Washington, Massachusetts, California, and Florida are among the states that require a bond for certain license types. If you're appointed in more than one state, each state's requirement is separate, and you can get bonded for all of them in one place.
Get bonded online in minutes
Whatever your state and license type require, our partner Propeller issues most producer and broker bonds instantly online. Pick the bond, submit the application, get approved, pay by card, and the bond is emailed to you, ready to file with the state. For a larger bond or an unusual license situation, our surety team can place it.
Producer & broker bond questions
What is an insurance producer or broker bond?
It's a surety bond some states require a licensed insurance producer or broker to post as a condition of the license. Like any surety bond, it's a three-party guarantee: you're the principal, the state insurance department is the obligee, and the surety stands behind it. It isn't insurance for you. It protects the state and the public that you'll follow insurance law and handle client funds properly, and you repay the surety for any valid claim.
Does Arizona require insurance producers to carry a surety bond?
Generally no. Arizona does not require a standard resident insurance producer to post a surety bond to hold the license. A resident insurance broker license carries a small bond (around $1,000), and specific roles like bail bond agents have their own requirement (about $10,000), while surplus lines brokers and a few other license types can carry bond or financial requirements. If you hold a standard Arizona producer license you most likely don't need one, but confirm your exact license type with the Arizona Department of Insurance and Financial Institutions (DIFI).
Which states require an insurance producer or broker bond?
Many do, and the requirement usually applies to brokers or surplus lines agents rather than every producer. Amounts vary widely, commonly from about $2,000 up to $100,000, and some states tie the amount to the premium you handle. Illinois, Washington, Massachusetts, California, and Florida are among the states with a bond requirement for certain license types. Because it's state-specific, the right move is to check the requirement for your license in each state where you're appointed.
How much does an insurance producer bond cost?
You pay a premium, which is a percentage of the bond amount, not the full amount. Many producer and broker bonds are small enough to issue at an inexpensive flat rate, and larger bonds are priced on your credit and financials. You'll see the price before you commit, and most bonds issue online in minutes.
I'm licensed in more than one state. Can you get those bonds too?
Yes. Each state's bond is separate, and the online portal reaches surety markets nationwide, so you can get bonded for every state that requires it in one place. For anything unusual or a larger bond, our surety team can step in.
Online bonds are issued through BrokerPro's partner Propeller. Approval, pricing, and bond availability are subject to the surety's underwriting and the requirements of the state or party requiring the bond. Bond requirements vary by state and license type; information on this page is general and is not legal advice or a guarantee of approval.