New York Excess Line Broker Bond

If you are applying for or renewing a New York Excess Line Broker license, you will need a $50,000 surety bond filed with the New York State Department of Financial Services. The bond is required by Section 2105 of the New York Insurance Law and applies to every excess line broker, whether you are licensing as an individual, a partnership, an LLC, or a corporation.

 

Surety Bond Authority has been writing surety bonds since 1971, and we work with New York excess line brokers regularly. We know exactly what the New York Department of Financial Services needs (and what trips applicants up). If you already know you need the bond and want to move quickly, call us at 800-333-7800 or get a free quote online. We issue most excess line broker bonds the same day once we have your application.

 

Quick Facts: New York Excess Line Broker Bond

• Bond amount: $50,000 (fixed by statute, applies to every applicant)
• Who requires it: New York State Department of Financial Services (DFS), Superintendent of Financial Services
• Governing law: New York Insurance Law Section 2105
• Bond form: NY DFS Excess Line Broker Bond, ExBond (Rev. 11/18)
• Applies to: Individual, partnership, LLC, and corporate (entity) excess line broker applicants
• Made payable to: The People of the State of New York
• Filing method: Paper bond mailed to NY DFS at One Commerce Plaza, Albany, NY 12257
• Premium: Annual, paid up front. Call 800-333-7800 for a free quote.

What Is an Excess Line Broker?

An excess line broker (sometimes called a surplus lines broker in other states) is a licensed insurance broker authorized to place insurance with carriers that are not admitted in New York. When a New York risk cannot be placed with an admitted carrier, an excess line broker can shop the risk to non-admitted (eligible) insurers and bind coverage on behalf of the insured.

 

Excess line is a small but specialized corner of the insurance market. It tends to handle hard-to-place risks: high-value property in disaster zones, unusual liability exposures, niche commercial coverages, and similar accounts that admitted carriers will not write at acceptable terms. Because brokers in this space deal with non-admitted insurers and significant premiums, New York requires a bond as a consumer-protection safeguard.

 

What Is the New York Excess Line Broker Bond?

The New York excess line broker bond is a license and permit surety bond required by Section 2105 of the New York Insurance Law before the Superintendent of Financial Services will issue an excess line broker license. The bond runs in favor of the People of the State of New York and protects insureds and the public against fraudulent or dishonest practices by the licensee or any sub-licensee named on the license.

 

If a broker is found guilty of fraudulent or dishonest practices during the bond period, or is convicted under any of the offenses in Article 150 of the New York Penal Law during that period, the State of New York can recover up to the full $50,000 bond amount. The surety pays the valid claim, and the broker reimburses the surety. As with all surety bonds, the bond is consumer protection. It puts financial accountability on the licensee for following the law.

 

Who Needs This Bond? Entity vs. Individual Applicants

Any applicant for a New York excess line broker license needs the same $50,000 bond. The bond is required regardless of how the applicant is organized. The practical difference between Entity and Individual applications is not in the bond amount or the bond form. It is in the acknowledgment paperwork that the bond requires.

• Individual, partnership, or LLC applicants use the Principal’s Acknowledgment for individuals, partnerships, or LLCs. The principal personally signs and acknowledges the bond before a notary public.
• Corporate (entity) applicants use the Corporation Acknowledgment. An authorized officer signs on behalf of the corporation, identifies the corporate seal, and confirms that the signature was authorized by the Board of Directors. The acknowledgment is also notarized.

Both paths produce the same $50,000 bond filed under the same form (ExBond Rev. 11/18). When you apply with us, we walk you through the acknowledgment that fits your business structure so the bond filing is complete the first time. This is the single biggest source of paperwork delays we see on this bond, and it is avoidable.

Sub-Licensees

If the principal is a firm, association, or corporation, certain individuals can be named as sub-licensees on the excess line broker license. The bond covers the principal AND every named sub-licensee for the entire license period. There is no separate sub-licensee bond. One $50,000 bond does the job, regardless of how many sub-licensees are added.

 

How Much Is the Bond?

The New York excess line broker bond amount is $50,000. This is fixed by Section 2105 of the New York Insurance Law and applies to every excess line broker license, with no scaling for premium volume, no surcharge for additional sub-licensees, and no reductions for new applicants. Every NY excess line broker posts the same $50,000 bond.

 

Bond Conditions: What Triggers a Claim?

The bond is conditioned on faithful performance of the licensee’s duties. Recovery against the bond is specifically authorized in two situations:

• The broker (or any sub-licensee) is found guilty of fraudulent or dishonest practices in connection with their excess line broker business during the license period.
• The broker (or any sub-licensee) is convicted of an offense under New York Penal Law Article 150 (which covers arson and related crimes) during the license period.

The bond is also subject to any new regulations promulgated after the bond’s effective date. In practical terms, this means the bond has to keep pace with regulatory changes during the license term.

 

The Form, the Acknowledgments, and the Date Hierarchy

This is where the New York excess line broker bond differs from most license bonds, and where applicants most often get tripped up. The complete bond filing requires three components, in three documents that must be dated in the correct sequence:

1. The bond itself (ExBond Rev. 11/18). Signed by the principal and the surety’s attorney-in-fact. Sets the effective date.
2. Surety Acknowledgment. A notarized acknowledgment by the attorney-in-fact, confirming the corporate seal, the authority to sign, and the surety’s continuing certificate of qualification under Insurance Law Section 1111. Must be dated the same date as the bond or later, never earlier.
3. Principal Acknowledgment (the right one for the applicant type). Either the Individual/Partnership/LLC acknowledgment OR the Corporation Acknowledgment. Notarized. Same date as the bond or later.
4. Power of Attorney page. Identifying the surety’s attorney-in-fact. Must be dated the same date as the surety acknowledgment or later, never earlier.

If any of those dates fall in the wrong order, NY DFS will reject the filing and send it back for correction, costing the applicant days or weeks. We handle the date hierarchy correctly every time. We also include the certified Power of Attorney with every bond we issue so the filing is complete in one shot.

 

What Does the Bond Cost?

The premium for a New York excess line broker bond depends on the applicant’s credit, financial history, and underwriting profile. Every situation is different. We work with all credit profiles and will find you the most competitive rate available. The premium is paid annually as a single up-front payment. There are no monthly payments on surety bonds.

 

For an exact quote tailored to your situation, call us at 800-333-7800 or fill out our online quote form. We turn most quotes around quickly so you can plan your licensing timeline accordingly.

 

How to Get a New York Excess Line Broker Bond

The process is simple. Most applications can be completed in a single business day.

1. Call or apply online. Reach us at 800-333-7800 or use our online quote form. Tell us whether you are applying as an individual, partnership, LLC, or corporation, and the licensing period you need the bond to cover.
2. Submit a short application. We need your basic personal or business information, license details (or pre-license information if you are a new applicant), financial information, and an authorization to run credit. Most of this can be done electronically.
3. Underwriting review. An expert underwriter reviews your application and confirms the premium. For most well-qualified applicants this is fast.
4. Pay the premium and receive the bond package. Once payment is in, we issue the bond, attach the certified Power of Attorney, and prepare the correct acknowledgment for your applicant type.
5. Sign and notarize. You sign the bond and the principal acknowledgment in front of a notary public. We can also coordinate a notary if needed.
6. Mail the original to NY DFS. File the original signed bond, both acknowledgments, and the Power of Attorney with NY DFS at One Commerce Plaza, Albany, NY 12257.
7. You are good to go. Your license can move forward through the New York Department of Financial Services.

Other New York Excess Line Broker Compliance Points

The bond is one piece of being an excess line broker in New York. Other ongoing compliance obligations under Article 21 of the Insurance Law and DFS regulations include:

• Stamping policy declarations through the Excess Line Association of New York (ELANY).
• Exercising due care when selecting an unauthorized (non-admitted) insurer.
• Submitting policy declarations within 45 days after a policy is procured.
• Maintaining complete records of policies placed with non-admitted insurers, including documentation supporting any declinations from admitted insurers.
• Paying the New York excess line premium tax (currently 3.6% of gross premiums charged to insureds, less return premiums) to the Superintendent.

None of these obligations are covered by the bond directly, but they are part of the regulatory environment the bond sits in. Knowing them up front helps you plan for the full cost of being an excess line broker, not just the bond.

 

Frequently Asked Questions

How fast can I get a New York excess line broker bond?

Most well-qualified applicants can have a bond issued the same day they apply. Because the bond is filed on paper with NY DFS in Albany, plan an extra day or two for mailing once it is signed and notarized. Call us at 800-333-7800 to start the process.

What is the New York excess line broker bond amount?

$50,000. This amount is fixed by Section 2105 of the New York Insurance Law. It does not scale with premium volume, business size, or applicant type.

Is the bond different for an entity vs. an individual applicant?

The bond amount and the bond form are the same. The difference is in the acknowledgment that gets filed with the bond. Individuals, partnerships, and LLCs use the Principal’s Acknowledgment for individuals, partnerships, or LLCs. Corporations use the Corporation Acknowledgment. We prepare the right one for your applicant type.

Do sub-licensees need their own bonds?

No. If the principal is a firm, association, or corporation, sub-licensees named on the excess line broker license are covered by the principal’s $50,000 bond for the entire license period. One bond covers them all.

Why does the date hierarchy matter so much?

NY DFS requires the surety acknowledgment and principal acknowledgment to be dated the same date as the bond or later, and the Power of Attorney to be dated the same date as the surety acknowledgment or later. If any document is dated earlier in the chain, DFS will reject the filing. We handle the dates correctly every time so this never becomes your problem.

Does the New York bond cover other states?

No. A New York excess line broker bond only covers New York. If you are licensed as an excess or surplus lines broker in other states, those states have their own bond requirements and amounts. We can write surplus lines bonds in other states too.

What happens if a claim is filed against my bond?

If a claim is filed alleging fraud, dishonest practices, or a Penal Law Article 150 conviction, the surety company investigates. Valid claims up to the $50,000 bond amount are paid out by the surety, and you are then required to reimburse the surety for the amount paid plus any costs. This is why credit and financial strength matter in the underwriting process.

What if my excess line broker license is renewing?

You need an active bond covering the new license period. We renew bonds in advance of the license renewal so coverage is continuous. Call us at least 30 days before your renewal date to keep the renewal smooth.

How do I get a New York excess line broker bond?

Call Surety Bond Authority at 800-333-7800 or request a quote online. We will tell you exactly what we need, run a quick underwriting review, issue the bond with the correct acknowledgment for your applicant type, attach the certified Power of Attorney, and send you a complete filing-ready package. Most well-qualified applicants are bonded the same day.

 

Get Your New York Excess Line Broker Bond from a 50-Year-Old Surety Bond Agency

Surety Bond Authority has been writing surety bonds since 1971. We work with excess line brokers, surplus lines firms, and corporate insurance entities across New York. We know exactly what NY DFS requires, including the strict date hierarchy that catches so many filings, the right acknowledgment for individuals versus corporations, and the certified Power of Attorney that has to ride along with the bond. We offer competitive rates, same-day approvals for most applicants, and a complete, filing-ready bond package.

 

Ready to get bonded? Call us at 800-333-7800 or visit our contact page to reach a real person on our team. You can also request a free online quote. Same-day approvals are available in most cases.

 

Need other New York surety bonds? Visit our New York Surety Bonds page.