Coverage

[Hamburglar]

The state is requiring me to obtain a bond in the amount of $90,000 for the state of Tennessee for my mortgage broker license. Why do I need this, i.e., what type of coverage does this give me?

[Admin]

The bond guarantees your companies performance per the terms of the state license you are applying for.

It does not cover you at all, as it is a bond, not insurance. The bond covers the state in event you operate against the terms of the state statutes mentioned in the bond. In fact, in the event of a valid claim, the bonding company will look to you for repayment of the claim and any associated legal fees.