Texas
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Texas surety bonds are in place to cover the cost of damages, legal fees, losses, and other financial obligations that arise if the laws aren't followed or the actions aren't taken.
A surety is a legally binding agreement between three parties. The first party is the principal. This is the person, business, or entity who needs to perform some action, or act in accordance to certain laws. Their actions need to be backed up by the bond.
The second party is the obligee. This is the person, business, or entity that requires proof that the principal will follow through with the correct action. This is the party that assumes financial risk should the principal not follow through with the correct action.
Finally, there is the surety company, such as NFP. We offer the sureties to the parties, offering a financial safety net should the principal fail to follow through.
Common Texas Surety Bonds
Texas surety bonds are in place to cover the cost of damages, legal fees, losses, and other financial obligations that arise if the laws aren't followed or the actions aren't taken.
A surety is a legally binding agreement between three parties. The first party is the principal. This is the person, business, or entity who needs to perform some action, or act in accordance to certain laws. Their actions need to be backed up by the bond.
The second party is the obligee. This is the person, business, or entity that requires proof that the principal will follow through with the correct action. This is the party that assumes financial risk should the principal not follow through with the correct action.
Finally, there is the surety company, such as NFP. We offer the sureties to the parties, offering a financial safety net should the principal fail to follow through.
Common Texas Surety Bonds
Texas Public Adjuster Bond
Auto Dealer Bond
Contractors Bond
Freight Broker (BMC-84) Bond
Certificate of Title Bond
Notary Bond
How do I purchase a Texas surety bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue many different types of surety bonds in Texas. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
Texas Surety Bond FAQs
In Texas, many businesses and professionals are required to obtain a surety bond to get licensed or operate legally. Common examples include auto dealers, general contractors, notaries, freight brokers, and mortgage professionals. These bonds provide financial protection to the public and ensure compliance with state regulations.
Auto dealers in Texas must post a $50,000 surety bond to be licensed. The cost of an auto dealer bond usually ranges from $375 to $1,000 for a two-year term, depending on the applicant’s credit score and business history. Dealers with excellent credit can secure lower premiums.
Texas doesn’t have a statewide contractor bonding requirement, but many cities and counties do. Local jurisdictions may require bonds ranging from $2,000 to $100,000, especially for electrical, plumbing, or general construction work. The cost of a contractors bond typically ranges from 1 to 3% of the bond amount annually.
Texas notaries are required to carry a $10,000 surety bond for their four-year commission term. The premium for a notary bond is usually around $50. This protects the public against errors or misconduct in the performance of notarial duties.
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