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Seller of Travel Bond

Before you can start a career as a travel agent, you may need to obtain a seller of travel bond (sometimes called a travel bond or a travel agent bond). These surety bonds are extremely important because bond issues can put a career in jeopardy. The sections below cover all the basics of travel agent surety bonding requirements.

What is a Seller of Travel Bond?

As a travel agent, you will frequently collect money from clients and pass it along to hotels, airlines, and other travel service providers. A seller of travel surety bond holds you accountable for using a client's funds improperly. If the funds do not reach their intended recipient for some reason, the client may file a claim against the surety bond for equal compensation.

As long as the claim holds up under investigation, the travel agent must pay for it. However, the surety bond agreement stipulates that if the travel agent does not settle, the surety company that underwrites the bond will pay the claimant. The travel agent must then repay that debt, including interest and fees, or they will lose bond coverage and face a possible lawsuit.

Who Needs a Seller of Travel Bond?

At present, travel agents only need a travel bond if they operate in one of the following states:

  • California
  • Florida
  • Illinois
  • Virginia
  • Washington

Travel agent bond requirements may have changed since the time of writing. Work with Viking Bond Service to determine your current bond requirements.

How to Obtain a Seller of Travel Bond

With the help of a surety agency like Viking Bond Service, obtaining this surety bond type takes minimal time or effort. Simply complete a surety bond application, submit to a credit check, and (in rare instances) provide additional documentation.

The surety company will quote the cost of the surety bond based on the application materials. Paying that cost, called the premium, activates coverage for 12 months, after which it expires unless renewed. Anyone with a seller of travel bond should prepare for the cost and be aware of the renewal date.

What Does a Seller of Travel Bond Cost?

Each state that requires a travel bond has different coverage requirements – e.g., the max amount the surety will pay to settle claims. The cost to the travel agent is a very small percentage of the coverage amount and based on the bond seeker's credit standing, typically 1% to 5%. If credit issues make it difficult to get approved for a surety bond at a fair price, get help from the bad credit surety bond program at Viking Bond Service.

Get Seller of Travel Bonds Through Viking Bond Service

Meet travel agent bonding requirements in under 24 hours with the resources of Viking Bond Service. To get started, request a quote. And to get more information, contact us or call 1-888-2-SURETY (1-888-278-7389).

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