What Is a Texas Health Spa Bond?
If you want to run a health spa in Texas, you need to get a certificate of registration from the Secretary of State. One of the requirements you have to meet is to provide a health spa bond.
Health club and spa bonds are security instruments that safeguard the interests of your clients. They guarantee you will comply with all relevant laws. A party who suffers damages in case you transgress from your legal obligations can file a bond claim and thus receive a reimbursement.
As all bonds, this surety bond is a three-party contract. Your health spa business is the principal. The Secretary of State is the authority requiring the bond, which is called the obligee. The surety is the bond provider.
Frequently Asked Questions
Who needs a health spa bond?
Health spa operators in Texas need to get registered with the Secretary of State. Obtaining a surety bond is among the criteria you have to meet in order to receive your certificate of registration. The bond ensures your compliance with the Health Spa Act, namely Chapter 702 of the Texas Occupations Code.
The amount you need to present depends on the prepaid memberships you have collected from your clients. You need to use the official bond form to submit yours.
How much does the bond cost?
The bond amount you have to post as a Texas health spa operator is between $20,000 and $50,000 and is set on the basis of the total prepaid collections on memberships. This amount is different from your bond premium that is your actual bond price. The rates are often between 1% and 5% for businesses with stable finances.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Prepaid memberships up to $20,000||$20,000||$150-$300||$200-$500||$500-$1,000||$1,000-$2,000|
There are a number of factors that affect your surety bond cost. Your personal credit score, business finances, and assets and liquidity are of high significance. The surety that you apply with needs to examine these criteria and assess the level of bonding risk. If your profile is solid, you can expect to pay less for the bond.
Can I get a bond with bad credit?
Lance Surety Bonds operates its Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, or civil judgements. If you are struggling with problematic finances, this bonding option may just be the right choice.
The premiums you can expect are about 5% to 10%, as they compensate for the increased bonding risk. You can still count on a top bonding rate with us. We collaborate with numerous A-rated, T-listed surety companies, which means we can shop around for you.
How do I start my bond application?
Do you want to learn more about how bonding works? You can consult our How to Get Bonded page to grasp the nitty-gritty details.
Reach us at (877) 514-5146 for any questions you may have about bonding and your application.
How are bond claims handled?
Your health spa bond works as a guarantee that your clients will not suffer damages in case you go out of business, or are unable to offer them the services they have paid for. A harmed party can file a bond claim to seek financial reimbursement. The maximum penal sum is the total bond amount you have posted.
Unlike insurance, bonds don’t protect you. This means that for proven claims, you are liable to make all payments yourself. Your surety may cover the costs initially, but you have to fully compensate it afterwards. That is why it is best to avoid situations that can lead to claims.