Your Guide to Insurance Adjuster Bonds
What do insurance adjusters do?
Insurance adjusters may inspect homes, businesses, vehicles, and other property types after someone files a claim with their insurance company for property damage or personal injury. Adjusters are responsible for deciding how much the insurance company should reimburse the claimant.
After investigation – through research, interviews, inspections, checking records, etc. – an insurance adjuster will compile a report for the claims examiner. The examiner is then responsible for approving the claim. After that, the adjuster will work directly with the claimant (policyholder) to settle the claim.
Independent Adjusters vs. Public Adjusters
Independent adjusters represent insurance companies. An insurance company may hire an independent adjuster to help them save money when settling claims with policyholders.
A claimant may hire a public adjuster to help them get the most significant reimbursement possible from their insurance company. The public adjuster, in return, receives a percentage of the settlement.
Get Your Insurance Adjuster Bond:
Quick Takeaways
- Insurance adjusters may inspect homes, businesses, or vehicles after someone files a claim with the insurance company for property damage or personal injury.
- Most states require insurance adjusters to obtain surety bonds as part of the licensing process.
- There are two categories of insurance adjuster bonds: public and independent.
- Since these bonds are low risk, you may be approved for your bond instantly upon applying.
What is an insurance adjuster bond?
Most states require insurance adjusters to obtain surety bonds as part of the licensing process. The bond ensures that the adjuster conducts their work ethically and lawfully – abiding by state laws and industry regulations. There are two categories of insurance adjuster bonds: public and independent.
Public Adjuster Bonds
As a public adjuster, you may need a surety bond to obtain a license in your state. Public adjuster bonds protect your clients (policyholders) and your state from fraud and other unethical activities. If you break your surety bond contract and cost your client money, they can file a claim on your bond for reimbursement.
Independent Adjuster Bonds
The same concept applies here. Independent adjuster bonds are required in various states as part of the licensing process. They protect your state and clients (in this case, insurance companies) by guaranteeing you will conduct business according to the law. Let’s imagine that you fail in some way to fulfill your obligations and cost an insurance company money. As a result, you may face a claim against your bond.
How does an insurance adjuster bond work?
Independent and public adjuster bonds are three-party contracts:
- Surety: The company that issues and underwrites the bond
- Obligee: The state that requires the principal to obtain a bond
- Principal: The insurance adjuster responsible for buying the bond and fulfilling its terms
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If a client files a claim against your bond, your surety may cover the costs – up to the amount of your surety bond. You must then repay the surety in full. Avoid claims against your bond by fully understanding your bond terms and obligations.
How much does an insurance bond cost?
You could pay as little as 1% of your required bond amount. Since these bonds are low risk, you may be approved for your bond instantly upon applying online using our secure, expedient platform. Your state sets the bond amount (penal sum) required, which can range anywhere from $5,000 to $50,000.
How to Become an Independent or Public Adjuster
To become licensed as an insurance adjuster in your state, follow this general process:
- Decide which type of insurance adjuster you want to be.
- Complete the required training and education.
- Pass a licensing exam.
- Acquire a surety bond.
- Get your license.
- Maintain your license through continuing education and regular license and surety bond renewal.
How to Get an Insurance Adjuster Bond in Your State
We can help you find the right license and permit bond for your business. ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online or call us at 888.435.4191 to speak with an agent directly.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.