$2,000 Massachusetts Special Insurance Broker Bond

Businesses are required to file a $2,000.00 bond with the Commonwealth of Massachusetts Office of the State Treasurer & Receiver General (the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from a licensed business breaking licensing laws.

Special Insurance Broker Bond

How much does the Massachusetts Special Insurance Broker bond cost?

Massachusetts Special Insurance Broker bonds typically cost $100.

Is a Credit Check Required for Massachusetts Special Insurance Broker Bonds?

Credit checks are not required for the Massachusetts Special Insurance Broker Bond.

Why is the Massachusetts Special Insurance Broker bond required?

Businesses are required to purchase and file a $2,000 bond with the Commonwealth of Massachusetts Office of the State Treasurer & Receiver General to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from the failure of a licensed business complying with the provisions of licensing laws.

How does the Massachusetts Special Insurance Broker bond work?

Massachusetts Special Insurance Broker bonds must be issued by an insurance carrier admitted by the Massachusetts Department of Insurance. The insurance company issuing any surety bond, such as the Massachusetts Special Insurance Broker bond, will also be referred to as the "surety company" or the "bond company". The business is referred to as the Principal, the surety bond company as the Obligor and the Commonwealth of Massachusetts Office of the State Treasurer & Receiver General as the Obligee.

The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form ("penal sum"). The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.