What is a Washington Seller of Travel Bond?
All travel agencies in the State of Washington are required to get bonded by the Washington’s Department of Licensing’s Seller of Travel Section. The seller of travel surety bond is an essential requirement for agents wishing to register and operate legally within the state.
Seller of travel surety bonds aim to provide protection to customers from any fraudulent activities that travel agencies might engage in. The bond essentially ensures that travel agents use the collected funds as contracted. Bonds claims may arise if the funds are not sent by the seller of travel to the appropriate individuals or entities.
Just like other surety bonds, the seller of travel bonds works as an agreement between three parties. The principal which in this case is the travel agency, the obligee which is the State of Washington’s Department of Licensing, and the surety, which is the company that will be underwriting your bond.
Questions about Seller Travel Bonds in Washington
Who needs to obtain a Washington seller of travel surety bond?
Washington agencies offering travel services to clients are required to register with the Business Licensing Service. As part of the registration process, all agencies are required to post a bond in order to continue with their business in legal compliance with the state regulations.
By posting a Washington Seller of Travel bond, the travel agents agree to comply with all provisions of Chapter 19.138 RCW of the State of Washington and comply with the rules and regulations presented by the Department of Licensing.
How much does a Washington seller of travel surety bond cost?
The seller of travel bond amount varies and is based on the annual gross income of the specific travel agency.
This surety bond is subject to underwriting, which means that a number of financial factors are taken into account when estimating your final bond cost. Among them the most important is your personal credit score.
|Bond Type||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Seller of Travel Bond||Annual gross income of $199,999 or lower||$10,000||Starts at $100||$100-$250||$250-$500||$500+|
|Seller of Travel Bond||Annual gross income of $200,000-$499,999||$20,000||Starts at $200||$200-$500||$500-$1,000||$1,000+|
|Seller of Travel Bond Annual gross income of $500,000-$749,999||$30,000||Starts at $300||$300-$750||$750-$1,500||$1,500+|
|Seller of Travel Bond Annual gross income of $750,000-$999,999||$40,000||Starts at $400||$400-$1,000||$1000-$2,000||$2,000+|
|Seller of Travel Bond Annual gross income of $1,000,000 or higher||$50,000||Starts at $500||$500-$1,250||$1,250-$2,500||$2,500+|
Applicants with stable financial assets and good personal score are likely to be rated in the range of 1%-3%. On the contrary, agents with bad credit score present higher risk for the surety and as a result they will get an increased bonding rate.
For further details on how your bonding rate is estimated, visit our surety bond cost page.
Can I get a Washington seller of travel surety bond if I have bad credit?
Personal credit score affects the final cost of your surety bond that you’ll be paying on a regular basis. Applicants coming from a rather unstable financial background are likely to receive higher bonding rates to compensate for the increased financial risk. The rate for such applicants will usually vary between 5% and 10%.
With Lance Surety Bonds, however, even applicants with bad or no credit can get a chance for a good bonding rate. Our Bad Credit Surety Bonds programs is designed for those with low credit scores, tax liens, bankruptcies or civil judgements.
As Lance Surety Bonds partners with a number of A-rate, T-listed surety companies, you can be sure you will get the best bonding option for your specific case.
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.
How do I get my Washington seller of travel bond?
It’s as easy, as accessing our online application form. Get your free bond quote by applying online today!
For further details on the bonding process you can visit our How to Get Bonded page.
Still having questions? Feel free to reach us at (877) 514-5146. Our bonding experts are ready to give you all the answers you might need.
What if I get a bond claim?
The Washington seller of travel bond aims at protecting the customers, ensuring that their fund are used appropriately to secure all travel services and benefits contracted for. If the travel agents do not comply with these rules and regulations, a bond claim can be filed against them.
If the claim is proven valid, then the surety will cover damages up to the full amount of the bond initially. However, the travel agency will eventually have to reimburse the surety for the damages paid.