VA surplus lines broker bonds.
$250 flat.

Virginia will not issue a resident surplus lines broker license until you certify that a $25,000 bond in favor of the Commonwealth is in force — and keep it in force for as long as the license is. It goes to the State Corporation Commission’s Bureau of Insurance on form SLB-2 under § 38.2-1857.2. Ours is $250 flat, and the price you see is the price at checkout. The application collects no credit information, and most applications approve instantly.

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Required before the Bureau of Insurance issues a surplus lines broker license under § 38.2-1857.2

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Fixed price, fixed amount — a $25,000 penal sum set by statute, and no quote process

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Multi-year terms available — set it up once for up to 3 years

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How it works

Three steps. One sitting.

The surplus lines bond is a fixed-amount, fixed-price filing — there is nothing to quote and nothing to negotiate. Here is the entire process:

NOW · ONLINE

Apply online

Your name or firm, address, contact, and an effective date. That is the application — no financials, no credit section, no follow-up scavenger hunt.

MINUTES, USUALLY

Pay & e-sign

License bonds like this are among the thousands of bond types that issue right after purchase. At most, a business day or two.

SAME DAY

File with the Bureau of Insurance

Your executed form SLB-2 and power of attorney arrive by email, ready to go in with your surplus lines broker application or renewal. Wet-ink original mailed on request.

About this bond

What it is and who needs it.

What the surplus lines broker bond actually guarantees

Surplus lines is the market for risks no admitted Virginia insurer will write, and the broker who places that business with an eligible nonadmitted insurer needs a separate license on top of a property and casualty agent license. Article 5.1 of Title 38.2 (§ 38.2-1857.1 et seq.) governs it, and the State Corporation Commission’s Bureau of Insurance issues and renews the license.

The bond is a condition precedent. Section 38.2-1857.2 requires the applicant, before a license issues, to file a certification or attestation that a $25,000 bond in favor of the Commonwealth, with corporate sureties licensed by the Commission, is in force — and will stay in force for as long as the license remains effective. Form SLB-2 states the conditions plainly: that you will conduct business under the license in accordance with Virginia’s surplus lines laws and regulations, and that you will promptly remit the taxes and assessments those laws provide.

That tax obligation is the practical heart of it. A surplus lines broker owes the 2.25 percent insurance premiums license tax on direct gross premiums from policies whose home state is Virginia, reported quarterly to Virginia Tax within 30 days of each quarter end once annual liability is expected to top $1,500. The bond stands behind those remittances. It is not insurance for you — if the surety pays, you repay the surety — and the surety is released from future breaches only after thirty days’ written notice to the Commission, which is why a lapse is a licensing event rather than a filing chore.

Code of Virginia § 38.2-1857.2 (form SLB-2)Section 38.2-1857.2 governs applications for a Virginia surplus lines broker license. Prior to issuance of a license, the applicant files with the Commission a certification or attestation that the applicant has — and thereafter shall keep in force for as long as the license remains in effect — a bond in favor of the Commonwealth in the amount of $25,000 with corporate sureties licensed by the Commission. The bond is conditioned that the broker will conduct business under the license in accordance with the provisions of the surplus lines insurance law and that he will promptly remit the taxes that law provides, and it may not be terminated unless at least 30 calendar days’ prior written notice of termination is filed with the Commission. The Bureau of Insurance form is SLB-2, "Bond for Surplus Lines Insurance Broker," which runs to the Commonwealth of Virginia in the penal sum of twenty-five thousand dollars and releases the surety from liability for future breaches only after thirty days’ written notice to the Commission. Initial applications also carry a fingerprint and criminal background check step; nonresident licensing runs through the reciprocity provisions of § 38.2-1857.9, and a nonresident broker is not required to post this bond (SCC Bureau of Insurance, licence renewal guidance).

You need this bond if you are

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Applying for a Virginia surplus lines broker license with the SCC Bureau of Insurance

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Renewing your broker license and your current bond is expiring or non-renewing

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A property and casualty agent moving into surplus lines and licensing for it the first time

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Replacing a surety that has given the Commission its thirty days’ notice of termination

One application, issued instantly.

These are the actual issuing fields — no credit section, because this application does not collect credit information.

Start the application →

FAQ

Common questions.

How much is the Virginia surplus lines broker bond?The premium is $250 flat — set by our carrier’s rate book for this bond, the same for every broker. The $25,000 penal sum is fixed by § 38.2-1857.2, so there is nothing to quote.

Do I pay the $25,000?No. You pay $250. The $25,000 is the surety’s maximum liability if a valid claim is made under Virginia’s surplus lines law — not a deposit, and nobody holds your money.

How fast will I have the bond?License bonds like this are among the thousands of bond types that issue right after purchase — many brokers finish the application and have the bond in the same sitting. At most, a business day or two.

Is there a credit check?The application collects no credit information, so most applicants approve instantly. If a check ever runs on this bond, it is a soft pull that will not affect your score.

Does the bond cover my surplus lines taxes?That is exactly what it is for. Form SLB-2 conditions the bond on conducting business lawfully under the license and promptly remitting the taxes and assessments the surplus lines law provides — the 2.25 percent premiums license tax on Virginia-home-state business, reported quarterly to Virginia Tax. A claim for unremitted tax is the classic call on this bond.

I am licensed in another state — do I need the Virginia bond?No. A broker licensed as a resident surplus lines broker in their home state receives the Virginia nonresident licence under § 38.2-1857.9 on proof of that licence, the application and fee, and reciprocity. The $25,000 bond in § 38.2-1857.2(C) applies to resident licences; the SCC’s renewal guidance states that nonresidents are not required to submit a bond.

Related bonds

Other Virginia bonds.

Finish your surplus lines license today.

$250 flat, a statutory $25,000 penal sum, and the bond often issued in the same sitting. Free until issued.

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Your price$250

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VA surplus lines broker bonds.$250 flat.