What does it mean to be licensed and bonded?

Licensed means the person holds the state license required to legally conduct that business, such as selling insurance or adjusting claims. Bonded means the person has posted a surety bond, a guarantee from a surety company that pays clients if the licensee fails to perform their duties. State rules set the amounts: Florida public adjusters must file a $50,000 bond, and Texas public adjusters need a bond of $10,000 or more.

Being licensed means the state has issued you a producer or adjuster license after you pass the required exam and clear a background check. Being bonded is separate: it means posting a surety bond, which in Washington insurance is required of public adjusters. Each individual public adjuster must file a $5,000 bond in the licensee's name, and the amount does not change with additional affiliates.