What is a New York public adjuster bond?
A New York public adjuster bond is a surety bond that holds public adjusters accountable to the law, ensuring they fulfill their duties faithfully and ethically. The bond protects a public adjuster’s policyholders from fraudulent or unethical business practices.
Both resident and out-of-state public adjusters must become licensed and bonded to do business in the State of New York, per the New York Department of Financial Services. If a public adjuster violates their surety bond terms – according to Article 150 of the New York Penal Law – they could face bond claims.
Get Your New York Adjuster Bond:
- A New York public adjuster bond protects policyholders from fraudulent or unethical business practices.
- Both resident and out-of-state public adjusters must become licensed and bonded to do business in the State of New York.
- New York requires public adjusters to post a $1,000 surety bond to cover the licensing period.
- A two-year premium for these bonds is only $100.
- The bond renewal deadline is December 31, every even-numbered year.
What is a public adjuster in New York?
Insurance adjusters, public and independent, may investigate insurance claims of property damage or personal injury. They determine how much an insurance company should cover for the loss. They often perform inspections, conduct interviews, research, and compile reports from photos, videos, and statements for claims examiners to review.
Public vs. Independent Adjusters
A public adjuster is a person, association, agency, or corporation acting on behalf of an insured (claimant) to negotiate the settlement of claims for damage or loss to property. Independent adjusters act in the best interests of insurers (insurance companies).
Learn more about independent and public adjusters in New York.
How does a New York adjuster bond work?
An insurance adjuster bond is a three-party agreement between a public adjuster, a licensing agency, and a surety company.
- Principal (obligor): The public adjuster that must obtain a surety bond before becoming licensed in the state
- Obligee: The state agency (New York State Department of Financial Services, Insurance Division) that requires the bond before granting a license
- Surety (guarantor): The financial company that issues and backs the surety bond
If someone complains about your job performance, the obligee can file a claim against your bond. If the claim is valid, your surety will step in to cover the costs to settle. You will then be held responsible for repaying your surety in full for the costs involved – plus interest and fees.
Frequently Asked Questions
New York requires public adjusters to post a $1,000 surety bond to cover the licensing period. Independent adjusters in New York aren’t required to get bonded. You will pay a small percentage of this amount to obtain your bond from a surety provider.
At ZipBonds, a two-year premium for these bonds is only $100. You must renew this bond by December 31 of every even-numbered year. We can issue these bonds instantly.
To qualify and successfully apply for your New York public adjuster’s license, follow these steps:
- Complete a Department-approved relicensing education course that totals at least 40 hours of instruction.
- Pass (within two years of applying for your license) a licensing exam.
- Submit fingerprints of both hands.
- Obtain a $1,000 surety bond.
- Submit five Certificates of Character.
- Submit a Statement of Employer (if applicable).
- Pay a $100 licensing fee for a licensing period of more than one year ($50 for one year or less).
How to Get an Adjuster Bond in NY
ZipBonds offers the fastest and most secure option for getting license and permit bonds. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent directly.
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.