Many types of businesses in Houston, Texas, have to get license bonds, so that they are allowed to operate. Often, the bond is required by a state body, but in some cases, it’s city or federal authorities that impose this licensing criterion.
Overview of Houston surety bonds
Surety bonds in Houston, just like all bonds, are a contract between three parties. The principal that needs to get bonded is your business. The authority that imposes the bonding requirement is the obligee. The third party that provides the bonding is the surety.
In most cases, your business will need to get a license bond, as illustrated above. You may also need to obtain a contract bond or a court bond. If you are running a construction company that wants to bid on public or private projects, you are likely to need contract bonds. If you want to act as a fiduciary, or bring an appeal to a court, you’ll need to get a court bond.
Surety bonds function like an extra layer of security for authorities and the general public. They protect against fraudulent activities that bonded parties may engage in. If you transgress from your legal obligations, an affected party can file a claim against your bond. The compensation for proven claims is up to the full sum of the bond.
Still have questions about surety bonds in Houston, Texas? Just call us at (877) 514-5146 and we’ll be happy to help you.
Questions about Surety Bonds in Houston, Texas
How much does a Houston surety bond cost?
The cost of your Houston bond depends on the amount you need to present to authorities. To get bonded, you need to cover a bond premium only. It is small percentage of the required bond amount. For many types of bonds, the typical percentages are between 1% and 5%.
Your bond cost also depends on your personal and business finances. Your surety has to take a close look at your personal credit score, business financials, and liquidity and assets. It assesses the risk involved in the bonding. For applicants with solid finances, the bond premiums are lower.
If you need more information about the way your bond price is formulated, check out our surety bond cost page.
Can I get a bond with bad credit?
Our Bad Credit Surety Bonds program is tailored to help applicants with low credit scores, tax liens, bankruptcies, or civil judgements get bonded. It’s available for most types of bonds, excluding contract bonds.
You can expect bad credit bonding premiums between 5% and 15% in most cases. The reason for the increased rates is the higher risk involved. We can still offer you a top bonding price. We foster close partnerships with numerous A-rated, T-listed surety companies, which means we can shop around for the best bond option for you.
How do I get my bond?
Getting your Houston bond is not difficult. Just apply online for a free, no-obligations bond quote. Once you complete the full application and provide us with your documents, we will also deliver your exact bond price.
Need more details? Our How to Get Bonded page is an excellent resource on the bonding process.
If you have any questions, just call us at (877) 514-5146. Our bonding specialists will be happy to help you.