Alabama Surplus Lines Broker Bond

An Alabama Surplus Lines Broker Bond costs $500 - $5,000. While the total amount of the bond is $50,000, you only pay a small percentage of that to get bonded (typically 1% - 10%). 

The percentage of the bond that you must pay—known as a bond rate or bond premium—primarily relies on your credit score. However, business financials, past bonding history, and industry experience may also factor into your bond rate. See How Much Does a Bond Cost? for more information.

1. Apply For Your Bond

Fill out a bond application. This online form is quick, easy, and available 24/7. It provides an instant bond rate by running a soft credit check (this won’t impact your credit score). 

To complete the application, you will need to provide the following:

• Bond Name (Alabama Surplus Lines Broker Bond)
• Bond Amount ($50,000)
• Contact Information

2. Get Your Bond Quote

Your bond quote will be sent to the email you provided on the form. This usually only takes a few minutes. Please check your Spam Folder. 

3. Purchase Your Bond

Follow the instructions provided in your quote email to log in to our website. 

There, you can sign the bonding agreement and pay your invoice. As soon as your bond payment is approved, you will receive a copy of your bond in your email. 

Please double-check that all the information on your bond form (FORM AL-SLB-13) is correct. The name of the applicant on the bond must be the applicant’s full legal business name.

All surplus lines brokers who are also residents of Alabama must hold a $50,000 Surplus Lines Broker Bond. This bond is a requirement to get licensed by the  Alabama Department of Insurance (ALDOI). It must remain active through the full licensing period.

In short, this surety bond acts as a financial guarantee to the state and consumers that the broker will conduct business ethically and lawfully. Notably in accordance with the Alabama Surplus Line Insurance Law (Title 27, Chapter 10, Article 2). If they fail to do so, the bond reimburses the affected parties. 

See How Does a Surety Bond Work? for more information.

Effective January 1, 2025, out-of-state surplus lines brokers operating in Alabama must hold a $50,000 Surplus Lines Broker Bond. It is a requirement to get and maintain a license through the ALDOI.

ALDOI implemented this new bond to enhance consumer safety. For more info, see the official bulletin. 

Please note that it is imperative to get this bond for license renewal. Out-of-state surplus line brokers operating in Alabama that fail to do so may face license suspension or revocation. 

Last year, we had an applicant named Noah whose professional license (and business operations) were paused due to a bonding issue. In short, a new bond was introduced in his industry, and he failed to get it. While we were able to get him his new bond quickly, it was still a costly mistake that could have been avoided by keeping up with his industry’s news.

To get a Surplus Lines Broker License in Alabama, you must apply through the National Insurance Producer Registry (NIPR). To do so, you will need:

• A high school diploma and 3 years of recent full-time experience in the property and casualty field.
• License Number or National Producer Number (if previously licensed).
• Social Security Number (first-time applicants only). 
• Proof of citizenship (ex. drivers license, passport, etc.).
• $50,000 surety bond (FORM AL-SLB-13). 

Please note that the above is for a Residential Surplus Lines Broker License. The requirements for the Non-resident Lines Broker License will vary.