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TABC Conduct Surety Bond

What is a Conduct Bond?

A Conduct Bond is a surety bond required by the Texas Alcoholic Beverage Commission (TABC). This surety bond is required of retailers that do not hold a food and beverage certificate but serve alcoholic beverages on the premises. A Conduct bond may be required of a retailer whose gross receipts come primarily from the sale of alcoholic beverages.

TABC Conduct Surety Bonds are usually $5,000 bonds. Higher bond amounts may be required. According to the TABC, the bond amount is determined by the retailer's distance from the nearest public school.

What does a Conduct Surety Bond do?

The Conduct Bond is required to maintain the license or permit needed to continue to operate the retail location. The bond provides a form of guarantee that the retailer will abide by the TABC code, rules and state laws regarding alcoholic beverages.

In the instance where a retailer violates these laws, the state can place a claim on the bond. The Surety, the company providing the guarantee behind the surety bond would be responsible for a payment to the state up to the amount of the bond. If a claim was filed on the bond, the Surety would pay the state then attempt to collect from the retailer the amount paid on the claim. The retailer is still ultimately financially responsible for any amount paid out on a claim by the Surety.

How much does a Conduct Surety Bond cost?

Rates for Conduct Bonds vary widely. The premium rates are determined based on various factors which include credit and financial standing. Typically, the poorer the credit, the higher the quotes are.

The best way to get a truly accurate quote for a Conduct Surety Bond is to apply for the bond and let the underwriter review the request and put a quote together.

Viking Bond Service, Inc. will always attempt to get the best rate for the request. In instances where the rate is high to start due to challenged credit, our renewal department can remarket the bond if there has been an improvement in credit and/or financial standing.

What is needed to apply for a Conduct Surety Bond:

  • Specific Bond form – A bond form is the actual document that contains the wording of the bond. The TABC requires use of their specifically worded bond form. The TABC Conduct Bond form is readily available and we have a copy on file.
  • Bond Amount – The TABC will specify the bond amount. This information needs to be passed to the Surety to get a quote. The minimum TABC Conduct Surety Bond requirement is $5,000 but in some cases can be higher.

How to Get Started with your Conduct Surety Bond request:

  1. Contact us to go over your bond request. Our agents will be able to tell you exactly what may be required to get a good quote for your specific bond request.
  2. Complete an application and send any required documentation. A financial statement is not always needed but may be required along with the application. An agent will let you know if a financial statement will benefit the quote.
  3. Once the application is received, an agent will work to get the best quote for the request. Typically the quote will be obtained same day to 24 hours.
  4. Once the quotes are received, the most favorable quote will be relayed. All Viking Bond Service, Inc. quotes are FREE with No Obligation.
  5. The last step is to simply pay the premium and receive your Conduct Surety Bond.

Request a TABC Conduct Surety Bond Quote:

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