What is a Seller of Travel Surety Bond?
Seller of Travel Bonds must be obtained by travel agents in order to guarantee that any funds they collect through travel bookings are properly transferred to the appropriate individuals or entities. These bonds exist to provide protection to consumers from fraud, misrepresentation, financial failure or any breach of contract by a bonded travel agent. Bond claims can arise in the event that funds are not sent by the seller of travel in accordance with state regulations.
Questions about Seller Travel Bonds in Minnesota
How much does a Seller of Travel Bond cost?
Bond quotes for seller of travel bonds are offered as a percentage of the total bond amount. They are paid for upfront on an annual basis, with an option to renew bond coverage each year. Due to the fact that these bonds are a form of financial guarantee, many bonding companies approach them more cautiously than other compliance bonds.
Applicants with industry experience and strong personal credit can be approved at standard market rates ranging between 1 to 3% of the bond amount.
For customers with no experience or bad credit, rates are usually a little higher to account for the risk. Fortunately, Lance Surety offers exclusive bad credit programs that allow us to offer very aggressive rates, which at times can be roughly half of what most other bond agencies are able to offer.
How do I get a Travel Agency Bond?
First, simply apply for one. You can receive a free quote in just minutes by applying on our 100% secure website application. Once you’ve been approved, you’ll just need to pay your bond premium and provide a signed copy of the surety’s indemnity agreement, which will be emailed to you with your quote. When the original bond is mailed to you, you’ll just need to sign it and then submit it to the state department requiring you to be bonded. It’s that simple!
Can I get a Seller of Travel Bond with bad credit?
With our agency, Yes! While our standard market rates are very low, our competitive advantage is being able to bond almost any travel agent, with very few exceptions. While bad credit rates are naturally higher than for those with stellar credit, Lance Surety has exclusive high risk programs that will help save you money.
To learn more about our about how we can save you money, view our section on Bad Credit Bond Programs.
How do travel agents avoid bond claims?
As a bonded seller of travel, you are responsible for correctly distributing any funds received in the process of booking vacation packages and other forms of travel. To avoid bond claims, take action to ensure booking funds are paid to the appropriate entities in a timely fashion. Additionally, you’re responsible for understanding Minnesota statutes and regulations governing the sale of travel, and must avoid misrepresentation or other fraudulent practices.
How can I lower my Seller of Travel Bond rate?
Seller of Travel Bonds are typically underwritten based solely on the personal credit of the owner. However, if you have bad credit, it may be possible for you to help lower your bond rate by providing additional information. One method would be to demonstrate your industry experience by submitting a professional resume. Another would be to demonstrate financial strength and liquidity by providing personal and business financial statements, or proof of cash on hand.
Still Have Questions? Check Our FAQ Pages
What Our Clients Have To Say?
Kimberlee AblesQuick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew PoincotLong story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie MartinezWe decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!