Yacht Broker Bonds in Your State
If you’ve been asked for a yacht broker bond, start with the details on your license application. The bond helps protect against covered losses when a broker doesn’t meet legal duties. Ashton Agency can help you make sense of the bond request for your application or renewal.
Questions about your bond? Call our East Coast team at (800) 451-4854 or our West Coast team at (800) 452-2663, or use the quote form below.
What Is a Yacht Broker Bond
A yacht broker bond backs the duties that come with your broker license. In Florida, those include honoring written sale or exchange contracts and following the Yacht and Ship Brokers’ Act. Someone harmed by covered misconduct may be able to make a claim. The bond is not insurance against damage to a vessel or a guarantee of its condition.
Three parties are involved: the broker required to obtain the bond (the principal), the surety company that issues it, and the state agency that requires it (the obligee). Ashton helps arrange the bond but isn’t one of those three parties. The bond form names who it protects. If the surety pays a valid claim, the principal has to pay the surety back.
Who Needs One and What It Covers
Bond requirements depend on your state and on whether you apply as a broker, an employing broker, or a salesperson. The examples below are not a nationwide schedule.
Florida
The Department of Business and Professional Regulation requires a $25,000 surety bond or irrevocable letter of credit for a yacht or ship broker. Its licensing guidance applies the $25,000 bond to brokers and employing brokers. A salesperson has a separate $10,000 requirement.
California
The Division of Boating and Waterways requires a broker applicant to file an acceptable surety bond or cash deposit before the license is issued. Its guidance describes an initial one-year license, with later renewals available for one or two years. Get the current bond form and amount from the division for your application.
In Florida, your bond has to cover the two-year license period. For each new period, file a new bond or the required continuation certificate. Plan the dates and paperwork with the licensing office before you renew.
Why Choose Ashton Agency
Brokers and salespeople
Ashton has been bonding businesses since 1966, long enough to have handled requirements for brokers and salespeople alike.
Real people
Whether you’re a broker filing for yourself or a salesperson who needs your own bond, you can talk with a member of the Ashton team.
Choice of carriers
We work with more than one carrier, so we can compare the bond options and rates for your license category.
Beyond one state
If your license or your clients span more than one state, we can help with the bond side.
Frequently Asked Questions
Does a yacht salesperson need the same bond as a broker?
Not in Florida. DBPR lists a $10,000 salesperson bond and a $25,000 bond for brokers and employing brokers. Tell us your license category so the request carries the right amount and the right principal.
Florida asks for $25,000. Does that mean I pay $25,000?
No. $25,000 is the bond amount, the figure the state sets for a broker. You pay a separate premium to get the bond. When you ask for a quote, have your license category, the required amount, and the term ready.
If I buy the bond, can I start brokering?
Not on the bond alone. It is one piece of the application. California, for example, also has an examination and other application requirements. You need the license itself before you broker.
What happens if my Florida bond ends?
Your Florida license is automatically suspended if the surety ends the bond and you haven’t filed a new one. Line up replacement coverage and filing before the current bond ends.
Request a Yacht Broker Bond Quote
Tell us about your business and we’ll follow up with a real quote.