What’s a Title Agency Surety Bond?
A title agency bond generally protects title insurance companies from harm caused by your agency. Title agencies must purchase these bonds as required by the title insurance companies they work with. In some cases, you may have to buy one to get your state license. Title agency bonds usually offer to pay back a state for fines and fees they assess against your license. However, each bond form is different and may cover monetary damages suffered by a title insurance company or a consumer.
Who needs a Title Agency Surety Bond?
Title agency bonds are required by several states such as Florida, Pennsylvania, and Maryland. Each state asks for a different bond amount. In some cases, the bond amounts can reach up to $150,000! In others, such as the Florida title agent bond, the amount needed is $35,000 which is much less. Regardless, you need one if you’re operating as a title agent in one of those states.
How much is a Title Agency Bond?
Title agency bond cost is determined by your personal credit score. The higher your credit score, the lower your bond cost. Let’s say your credit score is 750. Generally, your premium should be 1% of the bond amount. For example: If your bond amount is $35,000, your bond cost should be $350. Other things like experience and your company’s age can reduce your cost. This means even a person with a lower credit score than 750 can still get a title agency bond at a low price.
How do I apply for a Title Agency Surety Bond?
- Complete our online Title Agency Surety Bond application, or
- Download and complete our printable Title Agency Surety Bond application, and
- Receive your surety bond quote in minutes!
Is a Title Agency Bond a License Bond?
Yes, title agency bonds are license bonds. License surety bonds are needed by businesses who must be licensed by their particular state. Businesses such as car dealerships, travel agencies, and insurance agencies are usually subject to state rules and regulations. Surety bonds provide a financial backup plan when your company violates them. As mentioned above, each one is different often in their form or amount.