Virginia Adjuster Bonds
We’ve got some news regarding Virginia Licensed Resident Public Adjuster Bonds. Here is the brass tacks of what is going on.
As of the Effective date of July 1, 2018, all licensed resident public adjuster entities are required to have the same surety bond requirements as resident public adjusters, nonresident public adjusters, and nonresident public adjuster entities.
Plain and simple, the required bond amount for Virginia Public Adjusters is $50,000. The annual premium is $300 and two-year premium is $525.
The good thing about working with NFP Surety, is that we can get you bonded the same day. Simply call us, or apply directly on our website to get bonded today. We have several different companies we can write this with. One of which is Merchants Bonding Company. With them. these bonds can be issued instantly on the Hub, requiring only a signed application, including business and personal indemnity. What this means is that we can get you bonded instantly. We’re here to answer any questions you may have.
Virginia Public Adjuster Bonds
How they work…
An adjuster bond works as a legally binding contract. An individual or their company (or both) must first apply for the bond. If approved, the applicant must pay a percentage of the full bond amount as a non-refundable principal payment. If the applicant breaks the promises backed by the bond, the applicant must eventually pay the full bond amount.
The applicant in this three-party contract is called the obligor. The surety is the company through which the obligor purchases the bond with the principal payment. The obligee is whoever is requiring the bond. The surety bond provides assurance that something will be done and that applicable guidelines or regulations will be followed by the obligor for the obligee.
If the obligee proves that the obligor has not upheld their end of the bargain under the surety bond, then the obligee will be paid the bond amount by the surety on behalf of the bond purchaser. The bond purchaser will eventually need to repay the surety the full bond amount.
Claims may affect pricing and qualification for future surety bonds. This can affect one’s ability to renew licensing in their field of work, so it is always best to settle customer complaints before the customer resorts to placing a claim on the bond.