Escrow Agency Surety Bonds

What is an escrow agency surety bond?

A type of license bond, the escrow agency surety bond exists to protect the public from harm resulting from errors or unlawful practices. Escrow agencies in many states are required to have a surety bond in order to be licensed for business.

Why do I need this escrow agency bond?

Your state will require a surety bond for your escrow agency as part of the business licensing process. If there is a claim against your business that you are unable to pay, a claim may be made against the surety bond to guarantee payment up to the bond limit. The surety company will seek reimbursement from the principal for any losses.

How much does an escrow agency surety bond cost?

The cost of surety bond premiums for escrow agents can range from $250 to $5,000, with the coverage amount ranging from $10,000 to as high as $500,000, depending on your state.

In California, for example, a $25,000 escrow agency bond is required, which carries an annual premium of $250. Premiums vary in other states depending on your business's financial health as well as the owner's personal credit score.

Cost of Escrow Agency Surety Bonds
State Bond Amount Cost
(Annual Premium)
Arizona $100,000 $1,000
California $25,000 $250
Montana $100,000 $1,000
Nevada $20,000-$250,000 Varies*
New Mexico $100,000 $1,000*
Oregon $50,000-$500,000 $500-$5,000*
Texas $10,000-$100,000 $100-$1,000*
Washington $10,000 100*

* Cost can vary depending on the bond amount required and your credit rating

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Qualifying for your escrow agent surety bond

When contacting your state to become a licensed escrow agent or officer, you'll learn whether an escrow agency bond is required as part of the registration process.

Here are the general steps to qualify for an escrow agent surety bond:

  1. Access your state's website for escrow agency license forms.
  2. Fulfill all requirements and obtain documents required in your state.
  3. Contact a credible bonding agency like NNA Surety Bonds.
  4. Apply for a free surety bond quote.
  5. Sign the contract and pay the premium.
  6. Receive your bond.

Getting an escrow bond in your state

If your business is in Arizona, California, Nevada, Oregon, or Washington, NNA Surety can help you get the necessary bond coverage for your state.

Montana escrow officers are also required to carry active surety bonds to conduct business. However, this type of bond is called an “escrow business license surety bond." Our bonding experts will be happy to provide you with a free quote for your Montana escrow business.

In New Mexico, escrow agents must obtain an escrow company license bond with a coverage amount of $100,000. The premium for this surety bond in New Mexico is $1,000.

If you operate a title insurance agency in Texas, the state's Department of Insurance requires you to post an escrow officer's schedule bond for each escrow officer you employ. Surety amounts for this bond range between $10,000 to $100,000. Premiums range from $100 to $1,000, depending on the amount of liability your business needs.

What else should I know about escrow agency surety bonds?

Your personal credit report has a large influence over the premium you'll pay. With a high score, premiums can be as low as 0.75% of the required bond amount. For example, 0.75% of a $50,000 bond is $375. Lower credit scores will raise the premium to 5%, 10%, or more.

To get answers that apply to your specific situation, fill out our form for a free quote or give us a call.

Questions? Call NNASurety Bonds at 855-215-2160
Monday to Friday, 6 a.m. to 5 p.m. (PT)

Providing Bonds and Insurance Since 1957