Close this search box.

South Carolina
Broker Bond

Issued by the South Carolina Department of Insurance

DEADLINE to RENEW is May 31st

What is the South Carolina Insurance Broker Bond?

The insurance industry is fraught with complexities and potential pitfalls for both consumers and insurance brokers. Navigating this intricate landscape requires a solid understanding of the rules and regulations that govern the industry. One essential aspect of this regulatory framework is the state of South Carolina Insurance Broker Bond. But why is this bond so crucial, and what benefits does it unlock for insurance brokers and their clients?

In this post, we will explore the ins and outs of the state of South Carolina insurance broker bonds, shedding light on their key features, the process of obtaining one, and the licensing requirements for insurance brokers in the state. Furthermore, we will delve into strategies to avoid claims on the bond, the role of the state of South Carolina Department of Insurance, and more. So, let’s dive in and unlock the benefits of this indispensable bond.

Key Takeaways

  • The South Carolina Insurance Broker Bond is a $10,000 bond that protects consumers from losses caused by violations or fraudulent practices.

  • The Bond is an instant issue surety bond and can be downloaded via PDF in about 5 minutes after online payment.

  • The South Carolina Department of Insurance (SCDOI) oversees licensing and enforces compliance to protect consumers and promote fair practices.

DEADLINE to RENEW is May 31st

Understanding the South Carolina Insurance Broker Bond

A surety bond protecting a South Carolina insurance broker

The South Carolina Insurance Broker Bond is a $10,000 bond mandated for licensed resident insurance brokers in the state. This bond serves as a financial guarantee for consumers, providing a safety net in case of violations or fraudulent practices by the broker. But what exactly is a surety bond, and how does it work in the context of insurance brokerage?

A surety bond, also known as a three-party agreement or contract, guarantees the fulfillment of a principal’s obligations to a second party or an Obligee. In the case of the South Carolina Insurance Broker Bond, the three parties involved are:

  • The broker, who acts as the principal

  • The South Carolina Department of Insurance, which is the Obligee,

  • A surety bond company provides the bond to ensure that it protects the consumers and works with bond producers.


Key Features of the Insurance Brokers Bond

As a legally binding agreement between the broker, the surety, and the South Carolina Department of Insurance, this license, and permit bond carries several key features. such as no credit check, that means that resident insurance brokers can secure the bond without worrying about the impact of their personal credit and history on their eligibility.

Another essential feature of the bond is its coverage amount. The South Carolina Broker Bond has a coverage amount of $10,000, which serves as the maximum payout that can be granted to consumers if the broker fails to meet their obligations. This amount ensures that consumers have a significant layer of financial protection in case of any contract violations or fraud by the broker.

DEADLINE to RENEW is May 31st


What the South Carolina Insurance Brokers Bond Ensures

The primary purpose of the South Carolina Insurance Broker Bond is to protect consumers against any losses they may incur due to the broker’s violations or fraudulent business practices. This includes:

  • Violations of insurance laws and regulations

  • Failure to transmit payments to an insurer or insured

  • Acts of fraud committed in connection with an insurance transaction.


The South Carolina Department of Insurance holds the insurance broker accountable for their actions to ensure that the whole obligation bond fulfills its purpose. Suppose an insurance broker is found to have engaged in any of the aforementioned violations. In that case, the surety bond company (which can be an insurance company) will compensate the affected consumers up to the insurance broker bond’s coverage amount of $10,000. In such cases, the insurance broker reimburses the surety bond  or insurance company for any such payouts.



Obtaining a South Carolina Insurance Broker Bond

Buy a Surety Bond Online

Having explored the role and significance of the South Carolina Insurance Broker Bond, we can now delve into its acquisition or renewal process for resident insurance brokers. South Carolina Resident Insurance Brokers often find, the trusted and convenient source for securing the insurance brokers bond.

The South Carolina Insurance Broker Bond cost is either $100 per year. This pricing structure makes it is accessible for resident insurance brokers of all sizes and financial situations to purchase it, ensuring they can comply with state regulations without breaking the bank.



Application Process and Issuance Timeline

The procedure to apply and qualify for the South Carolina Insurance Broker Bond is straightforward, go to to purchase or renew your South Carolina Insurance Brokers Bond. No credit check is required, making it an instant issue bond that means you can download your South Carolina Insurance Broker Bond in a PDF within 5 minutes after application and online payment, freeing up your time to concentrate on servicing your customers and driving more business.

Licensing Requirements for Resident South Carolina Insurance Brokers

In addition to obtaining the South Carolina Insurance Broker Bond, Insurance brokers must also fulfill several other licensing requirements to operate legally in the state. These requirements include:

    1. Obtaining a producer license
    2. Completing pre-licensing education
    3. Passing an exam
    4. Submitting a license application

Fulfilling these prerequisites is a testament to the brokers’ commitment to delivering ethical and professional services to their small businesses and clientele. Furthermore, these licensing requirements help ensure that South Carolina insurance brokers have the knowledge and skills to see small businesses navigate the complex insurance landscape and protect the interests of their clients.

Pre-licensing Education and Exam

Insurance Broker licensing Exam

Before applying for a producer license, South Carolina insurance brokers must complete at least twelve hours of pre-licensing education related to broker and/or surplus lines insurance. This education covers topics such as:

  • Insurance regulation

  • General insurance

  • Property insurance basics

  • Dwelling policies

  • Homeowners policies

  • Personal and commercial auto policies


Upon completing the required pre-licensing education, insurance brokers must pass the South Carolina Licensing Exam. This exam consists of multiple-choice questions and is divided into two sections: a general section that covers fundamental insurance product knowledge and a state-specific section that includes the insurance products, laws, rules, and regulations applicable to South Carolina. Passing this exam ensures insurance brokers have the knowledge to serve their clients effectively.

Renewal and Continuing Education

To maintain their producer license, South Carolina insurance brokers must renew their license annually. The renewal process involves three parties:

  • Paying a renewal fee

  • Completing 24 credit hours of continuing education every two years (including 3 hours of ethics training)

  • Submitting a renewal application.

By meeting these renewal requirements, insurance brokers demonstrate their ongoing commitment to staying up-to-date with industry developments and best practices. Such ongoing education aids insurance brokers in consistently delivering top-notch services to their clientele while staying adaptable to the dynamic insurance landscape.

The Role of the South Carolina Department of Insurance


The South Carolina Department of Insurance holds a significant role in licensing agency overseeing brokers and their compliance with all pertinent laws and regulations. This includes all other government agencies overseeing licensing requirements, enforcement actions, and penalties for noncompliance.  By maintaining strict oversight of the insurance brokerage industry, the department helps protect consumers and promote a fair and competitive marketplace.



The South Carolina Insurance Broker Bond is a crucial component of the state’s regulatory framework for insurance brokers. This insurance broker bond ensures that brokers adhere to all relevant laws and regulations, protecting consumers from potential losses due to violations or fraudulent practices.

By obtaining the South Carolina Insurance Broker Bond, completing the necessary licensing requirements, and following best practices to avoid claims, South Carolina Insurance brokers can maintain a positive reputation in the industry and provide top-notch products and services to their clients. As an insurance broker, understanding the ins and outs of the South Carolina Insurance Broker Bond is vital to your success in the insurance industry. So, make sure you stay informed, get bonded, stay compliant and watch your business thrive. 

DEADLINE to RENEW is May 31st

Palmetto Surety Corporation is the top seller of South Carolina Contractors License Bond

Palmetto Surety Corporation, founded in 2003, located in historic Charleston, South Carolina, provides all types of Surety to companies at all levels.  Palmetto Surety develops and utilizes state-of-the-art technologies creates  custom-built technologies that allow us to approve and underwrite most surety bond applications within 24 hours.


“My Bond was approved the same day! The customer service was excellent, definitely going to use Palmetto Surety for all my insurance needs from now on!”


“By far the best experience I had in buying a bond online. I'm going to recommend Palmetto Surety to all my associates for their Bonds”

Insurance Broker Bond FAQ


  1. Protects the Public: If a broker acts unethically or illegally, the bond can provide compensation to any harmed parties.
  2. Ensures Compliance: Bonded Brokers adhere to industry standards and regulations, which helps maintain the integrity of the profession.
  3. Builds Trust: Bonds build trust between the broker and their clients, as they provide a form of insurance that the broker will fulfill their obligations.
  4. License Requirement: This is to ensure that the brokers have a form of financial accountability for their professional actions.


The South Carolina Department of Insurance has strict rules and regulations requires that insurance brokers  maintain a $10K Broker Bond.



The cost of an insurance broker bond in South Carolina starts at $100 a year.



To obtain a bond in South Carolina, you can follow these general steps:

  1. Determine the Bond Requirement: Identify the type of bond you need and the required bond amount. This information is typically provided by the state agency regulating your profession.
  2. Apply with a Surety Bond Company: Contact a surety bond company,  complete an application and possibly undergo a credit check.
  3. Underwriting Process: The surety company will evaluate your application, credit history, and professional experience.
  4. Pay the Premium: Once approved, you’ll pay the bond premium, which is a percentage of the bond amount.
  5. Bond Issuance: You’ll need to sign it and may need to file it with the state agency that required the bond.
  6. Continuous Compliance: Maintain the bond for as long as you are required to do so by law, which often means renewing the bond periodically.



Click Here to fill in the application, pay and then print your bond online pursuant to Title 38, Chapter 45 of the South Carolina Code of Laws.   Insurance Broker licenses are renewed in May.



No bonds are typically not refundable. The premium paid to insure a surety company is for the bond coverage for its term, which is the period the bond is in effect. If a bond is canceled, there generally are no refunds for the premium paid because the surety has already extended its guarantee and has been at risk during the bond term. However, some contract bonds and commercial bonds from back companies may offer pro-rated refunds if a bond is canceled early in certain situations, but this is not the norm and would be subject to the terms of the bond and the surety company’s policies.



  • Applicants must first pass the state examination prior to applying for a license through PSI.
  • Apply online through NIPR.
  • Pay the biennial license fee of $200.
  • Submit Form 3535 (We fill out and seal the Bond Form for you)
    *Only individuals may be licensed as brokers in South Carolina.  

What are the differences between the surplus lines insurer Bond and the insurance broker bond in South Carolina?

Both surplus lines insurer bonds and insurance broker bonds are required for certain professionals in South Carolina’s insurance industry, but they serve different purposes and have different requirements. 

FeatureSurplus Lines Insurer BondInsurance Broker Bond
Required bySouth Carolina Department of InsuranceSouth Carolina Department of Consumer Affairs
Amount$25,000$10,000 – $50,000
PurposeGuarantees financial responsibility to policyholdersGuarantees financial responsibility to clients
Who needs itInsurance companies issuing surplus lines policies in South CarolinaIndividuals or firms acting as insurance brokers in South Carolina