What is a Pennsylvania Public Adjuster Bond?

Pennsylvania Public Adjuster BondPennsylvania requires public insurance adjusters to submit a surety bond as part of their licensing requirements before they can transact business within the state.

The Public Adjuster Bond guarantees that public adjusters will faithfully adhere to all laws, regulations, and statutes related to the negotiation and adjustment of insurance claims. It protects clients from any financial damages that they may endure as a result of the public adjuster’s breach of his or her agreement.

According to the Public Adjuster Licensing Law, a “public adjuster” refers to “any person engaged in advertising, soliciting business or holding himself or herself out to the public as an adjuster of claims for losses or damages arising out of insurance policies.”

The bond ensures that applicants that they will not “embezzle, take, secrete or otherwise dispose of or fraudulently withhold, appropriate, lend, invest or otherwise use or apply any money or substitutes for money or any salvage, goods or property received by him or her as a public adjuster or employee of a public adjuster, contrary to the instructions or without the consent of the assured or his legal representative.”

The responsibilities of public adjusters include:

  • soliciting business
  • investigating losses
  • adjusting losses
  • advising the insured concerning claims for damages on behalf of any other person
  • being engaged in the business of adjusting losses


What is the bond amount?

The bond amount is $20,000.

The cost of the bond is a percentage of the bond amount, which you can get between 1% and 5%. This will serve as your bond premium and be determined by the Surety.


How can I obtain a Public Adjuster Bond?

Here are simple steps to follow:

STEP 1: Apply for the bond

You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!

STEP 2: Underwriting

We will ask you for a couple of relevant information needed for the bond. A certified surety underwriter will carefully evaluate your credit score to gauge your bonding capacity. Do not worry; there are no intimidating financial statements required for this type of bond!

STEP 3: Bond execution

Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!


What are the bond conditions?

  • The Surety must be authorized to conduct business in the Commonwealth of Pennsylvania.
  • The bond is required by the Pennsylvania Department of Insurance (Obligee).
  • The Principal must faithfully comply with all applicable laws under the Public Adjuster Licensing Law, Act of 2012, P.L. 209, No. 21.
  • If the Principal faithfully and honestly performs his duties as a public adjuster as promised, the obligation will be considered null and void. Otherwise, it will remain in full force and effect.
  • The Surety must provide the Insurance Department at least a 30-day notice before the cancellation of the bond.
  • Public adjuster bonds must be renewed two years from the effective date along with the license.

Call us at 800-333-7800 today!

Liked this content? Share it!