Surety bonds serve as a protection for the state and its citizens and guarantee that businessеs operate in accordance to the state or local legislations. There are three main categories of surety bonds across the U.S.: license and permit bonds, contract bonds, and court bonds. These three are further divided into more specific types, depending on the business to be conducted.
Here’s a brief list of the most popular types of bonds in the city of Fort Worth:
Most Popular Surety Bonds in Fort Worth
The Texas Department of Transportation requires all dealers planning to conduct a business in Fort Worth to get bonded at the fixed amount of $25,000. The bond’s aim is to protect the state and its citizens from any financial losses suffered as a result of unlawful business practices on the part of the dealer.
The freight broker licensing process in Fort Worth is the same as in all states and is regulated by the Federal Motor Carrier Safety Administration (FMCSA). Freight and property brokers are required to post a bond in the amount of $75,000. The bond guarantees payment to shippers and carriers if the the broker fails to comply with the agreements that go along with the bond.
Travel agents in Fort Worth need to obtain an ARC bond as required by the Airline Reporting Commision. The bond essentially guarantees that the agency will send the payments collected by customers to the proper airline company.
Agents who apply to the Airline Reporting Commission for the first time are required to bond a $20,000 bond, while those who have been on the ARC agency list for two years may have the bond decreased to as low as $10,000.
Credit service organizations assist buyers in obtaining an extension of credit or improving their credit rating. These organizations in Fort Worth, as well as in many other states, are required to post a $10,000 bond. The bond is required by the Texas Secretary of State and serves as a guarantee that the credit service organizations comply with the law and do not harm their buyers financially.
Anyone planning on supplying, importing, exporting, dealing or blending gasoline or diesel fuel in Fort Worth is required to get bonded. The minimum Texas Fuel Tax bond is $30,000 and the maximum is $600,000.
All health clubs in Fort Worth are obliged to obtain a Health Club bond by the Texas Secretary of State. The bond protects the club’s customers in case it unexpectedly closes and ends their prepaid memberships. The amount of the bond is based on the number and price of prepaid memberships sold at the club.
Overview of the Fort Worth surety bonds
Fort Worth surety bonds, just like the bonds in other states, serve as a contractual agreement involving three parties. These are: the principal which is the business posting the bond, the obligee which is the authority requiring the bond, and the surety company that will be providing the bond.
Surety bonds serves as an extra measure of protection against fraud and unethical practices. If a business engages in unlawful business endeavours, they can face a claim on their surety bond.
If you want to learn further details on the bonding process, feel free to contact us at (877) 514-5146. Our experts are ready to assist you with all your questions.
Frequently Asked Questions
How much does a Fort Worth bond cost?
The final cost of your Fort Worth surety bond varies, depending on the type of bond and the regulations of the institution requiring it. Keep in mind, the premium you will be paying regularly is a certain percentage of the whole amount.
Surety bond companies take into account a list of factors when it comes to estimating your specific premium. The most important criteria is your personal credit score. The lower your score, the riskier you are as an applicant and the higher the premium you have to pay.
What if I have bad credit?
Having a bad or even no credit is not an issue with Lance Surety Bonds. Our Bad Credit Surety Bonds program is designed for applicants who come from a less than perfect financial background and still need a good bonding deal.
Lance Surety Bonds works with a number of A-rated, T-listed surety companies, that will provide you with top rates in the range of 5% to 15%, depending on your specific financial case.
How do I apply for a Fort Worth surety bond?
Our online application is an east and fast way to get bonded in Fort Worth. Choose the type of bond you’re interested in and let us know about your credit score. We’ll get back to you with a free bond quote in the matter of minutes.
If you still have questions on the bonding process, feel free to check out our How to Get Bonded page or simply contact our experts at (877) 514-5146.