Several states have a surety bond requirement in order to obtain/maintain a title license. For example, there is a $100,000 surety bond requirement in Pennsylvania, $150,000 in Maryland, $35,000 in Florida, etc.
Surety bonds differ dramatically from the other types of policies you will need to purchase. Surety bonds are NOT insurance. Rather, it is a 3rd party guarantee to the State of Pennsylvania (or whichever state is applicable) that the owners will faithfully perform their fiduciary responsibilities to the Commonwealth/State. In the case that the owners are not faithfully performing their duties (i.e. steal monies from the escrow account), the surety carrier would then step in and make the injured party whole (up to the limit of the bond). Subsequent to a payout on the surety bond, the carrier will then come back to the owners to repay them. The difference here is that you cannot purchase insurance to pay for your own theft. If you (the owner) steals, you are still held accountable for the stolen money. For this reason, an indemnity agreement is required before the surety bond is issued. You must agree to indemnify the surety for any and all losses that occur under the terms of the surety bond.