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M. BURR KEIM AGENCY · License & Permit Surety Bonds · Reviewed November 2026

Insurance Producer Bond

An insurance producer bond is a surety bond required by some states before an insurance agent or broker can be licensed. It gives the state and policyholders a way to recover certain losses caused by a producer’s failure to account for premiums or comply with insurance laws.

Apply for This Bond Online How to Apply Questions

At a glance

Product
Insurance Producer Bond
Category
License & Permit Surety Bonds
Required amount
State insurance departments set producer bond amounts, commonly $10,000 to $50,000 depending on the license type. Some states require a higher amount for surplus lines or managing general agents. Confirm the amount and obligee with the state insurance department.
Online issue
Instant issue up to $50,000 for our appointed agents. All other producers are instant issue up to $25,000, and instant issue with acceptable credit is available up to $100,000. Specialized license types may require underwriting review.
Term
Producer bonds are usually written for a one-year term and renewed with the license. Some states require a bond that runs for the full license period or a continuous term. Follow the state insurance department’s instructions.

Who needs an insurance Producer Bond?

  • Insurance agents, brokers, and producers applying for a state producer license that requires a surety bond.
  • Producers adding a nonresident license or renewing a license where the state requires a bond.
  • Agencies confirming the bond amount and obligee required by a state insurance department.

Why is an insurance Producer Bond required?

State insurance departments use producer bonds to protect policyholders and insurers when a producer mishandles premiums or violates the insurance code. The bond can respond to certain covered failures, up to the bond amount.

The bond is required as a condition of licensure and does not replace errors and omissions insurance, a fidelity bond, or the producer’s own premium accounting controls.

How much bond do I need?

State insurance departments set producer bond amounts, commonly $10,000 to $50,000 depending on the license type. Some states require a higher amount for surplus lines or managing general agents. Confirm the amount and obligee with the state insurance department.

Instant issue up to $50,000 for our appointed agents. All other producers are instant issue up to $25,000, and instant issue with acceptable credit is available up to $100,000. Specialized license types may require underwriting review.

Bond amount is not the premium. The required amount is the maximum the surety could pay under the bond. The premium you pay is a separate charge based on the bond amount, the risk, the term, and your credit. The online application shows the premium before you bind coverage.

How much does an insurance Producer Bond cost?

Premium depends on the bond amount, the state, the license type, the term, and the applicant’s credit. Producer bonds are typically inexpensive relative to the bond amount. Apply online for the current premium and the required term.

How to apply online

  1. Confirm the bond amount and obligee. Use the amount and legal name of the agency, court, client, or government entity that requires the bond. The obligee name must match the requiring party’s records.
  2. Gather the application information. Have the legal business or entity name, address, license or case number, ownership information, and the required bond amount ready.
  3. Start the CNA Surety application. Use the online application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency.
  4. Pay the premium and bind coverage. If the bond is eligible for instant issue, the application will show the premium and let you complete the purchase online. Otherwise, the surety will review the application and contact you if additional information is needed.
  5. File the bond. Provide the issued bond to the agency, court, client, or government entity that requires it, and keep a copy for your records.
Apply for This Bond Online All Bonds

Insurance Producer Bond term and renewal

Producer bonds are usually written for a one-year term and renewed with the license. Some states require a bond that runs for the full license period or a continuous term. Follow the state insurance department’s instructions.

Good to know

  • Some states require the bond only for nonresident producers or for specific license types. Check the state insurance department’s current licensing requirements before applying.
  • If you are licensed in multiple states, you may need a separate bond for each state. The online application can be used for each requirement.

Insurance Producer Bond questions

An insurance producer bond is a surety bond required by some states before an insurance agent or broker can be licensed. It gives the state and policyholders a way to recover certain losses caused by a producer’s failure to account for premiums or comply with insurance laws.

Insurance agents, brokers, and producers applying for a state producer license that requires a surety bond. Producers adding a nonresident license or renewing a license where the state requires a bond. Agencies confirming the bond amount and obligee required by a state insurance department.

Premium depends on the bond amount, the state, the license type, the term, and the applicant’s credit. Producer bonds are typically inexpensive relative to the bond amount. Apply online for the current premium and the required term.

State insurance departments set producer bond amounts, commonly $10,000 to $50,000 depending on the license type. Some states require a higher amount for surplus lines or managing general agents. Confirm the amount and obligee with the state insurance department. Instant issue up to $50,000 for our appointed agents. All other producers are instant issue up to $25,000, and instant issue with acceptable credit is available up to $100,000. Specialized license types may require underwriting review.

Apply online through CNA Surety using the application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency. Complete the application, pay the premium online if the bond is eligible for instant issue, and then file the bond with the agency, court, or client that requires it.

No. Bond requirements vary by state and license type. Some states require a bond for all producers, some require one only for nonresident or surplus lines producers, and some do not require a producer bond. The state insurance department’s licensing instructions are the controlling source.

No. The bond protects the state and policyholders against certain failures to account for premiums or comply with insurance law. Errors and omissions insurance covers professional liability claims. Many producers need both.

Online application and important note

Bond requirements, forms, amounts, and fees are set by the requiring agency, court, or carrier and can change. This page is general information, not legal advice. Confirm the current requirement with the agency, court, client, or your attorney before applying. M. BURR KEIM AGENCY is an insurance and surety bond agency; the bond or policy is issued by the carrier named on the document.