What Is a Florida Seller of Travel Surety Bond?
Travel agencies in Florida offering travel bookings are required to post a seller of travel surety bond, so that they are allowed to operate legally in the state. That’s how they can obtain their Florida seller of travel license.
The purpose of seller of travel surety bonds is to protect the clients of travel agents from fraud and misuse. For the agencies, obtaining a bond is a sign of reliability.
Your Florida seller of travel surety bond works just like other surety bonds. It’s a contract between three entities. The principal that needs the bonding is your agency. The obligee is the state authority that requires you to get bonded– in this case, the Florida Department of Agriculture and Consumer Services. The surety is the third party, which underwrites your bond.
Questions about Seller Travel Bonds in Florida
Who needs to obtain a Florida seller of travel surety bond?
Travel agencies that offer travel services to clients are required to get a Florida seller of travel surety bond to function in legal compliance in the state.
The bonds guarantee that the funds collected by the agencies will be handled properly and transferred to other parties as agreed upon in contracts. In this sense, it is a protection for clients and partners of the sellers of travel.
How much does a Florida seller of travel surety bond cost?
The bond amount required of Florida travel agencies varies depending on the type of services offered. In principle, this amount must be between $25,000 and $50,000. Your bond amount will be set by the Florida Department of Agriculture and Consumer Services when you apply for your registration.
Your bond premium, however, is only a fraction of the amount you need to post. If you qualify for the standard bonding market, the percentage is likely to be in the range of 1%-3% of the total bond amount. For a $25,000 bond, this means you will end up paying between $250 and $750.
|Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Florida Seller of Travel (Minimum Amount)||$25,000||$188-$375||$250-$750||$625-$1,250||$1,250-$2,500|
|Florida Seller of Travel (Maximum Amount)||$50,000||$375-$750||$500-$1,500||$1,250-$2,500||$2,500-$5,000|
How exactly is your bond premium determined? Your surety provider needs to take a close look at your personal credit score, as well as at your business finances and assets and liquidity. The surety will evaluate the risk of bonding you. On this basis, your bond cost will be lower if your overall finances are stable.
For a complete overview of how your Florida seller of travel surety bond price is set, our surety bond cost page is a great resource.
Can I get a Florida seller of travel surety bond with bad credit?
Even if you have problematic finances, Lance Surety Bonds is here to help you get bonded. Our Bad Credit Surety Bonds program is for bond applicants with low credit scores, tax liens, bankruptcies, or civil judgements.
You can expect bonding rates between 5% and 10%. The slightly higher premiums compensate for the higher risk. Still, you can be sure you’re getting a top price with us. We foster close relations with a number of A-rated, T-listed surety companies, so we can shop around for the best bonding option for you.
How do I get my Florida seller of travel bond?
You can apply online for your free bond quote today! For your exact bond price, complete the full application and attach all necessary paperwork.
For further information, our How to Get Bonded page offers a complete overview of the bonding process.
Any questions or concerns? Just contact us at (877) 514-5146 and our bonding experts will provide you with the assistance you need.
How are bond claims handled for travel agencies?
Unlike insurance, bonds serve as protection for your clients and business partners against misuse and fraud on your side. If you fail to abide by the applicable state statutes, you can face a claim on your Florida seller of travel surety bond.
Proven claims are a serious financial threat to your business. Your surety covers all costs initially, so it will reimburse the claimant up to the penal sum of the bond. However, you are liable to repay it afterwards.
Bond claims are not only a financial burden, they can seriously damage your reputation and your ability to get bonded in the future. That’s why you should make sure that all your due payments to partners are done on time, and that you are in compliance with state regulations at all times.