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Surety Bonds in Texas

Viking Bond Services is your partner in Texas surety bonds. There are over 150 surety bonds used to protect various parties in the state, and we work with you to find the most affordable bond while providing exemplary service. We have many years of experience helping Lone Star state businesses get the surety bonds they need. Our quick and economical process makes us one of the premier bonding companies in the area. State regulation, commercial agencies, or specific contracts may require surety bonds in Texas.Our bonding experts will help you to navigate the system's complexities to get you just what you need.

How Does A Surety Bond In Texas Work?

There are many different types of surety bonds Texas requires, but each works in the same way. When someone obtains a surety bond, they agree to accept financial liability for damages they may cause another party by failing to perform their responsibilities lawfully and competently. The protected parties can include:

• State agencies
• Project owners
• Utility companies
• Consumers
• The public

Every Texas surety bond is a legally binding agreement involving three essential parties:

• The Obligee creates the bond requirements. The obligee may be a state agency, a business, or a project owner.
• The Principal is required to obtain the Texas surety bond to legally pursue the work or action governed by the bond. For instance, a general contractor who wants to work in the City of Austin must first acquire a contractors license bond. The principal has the final financial liability for all claims.
• The Surety is the insurance company that underwrites the bond. The surety will pay claims against the bond if the principal can't or won't settle. Although the surety guarantees payment, they will expect repayment – plus interest and fees – from the principal.

When unlawful, unethical, or contractually prohibited misconduct results in damages, the injured party may file a claim against the surety bond. The surety thoroughly investigates each claim. If they find in favor of the claimant, the surety pays the claim up to the total value of the Texas surety bond. If the claim has no merit, it is dismissed. If the surety pays the claim, the bonded principal must reimburse the surety.

The surety agency does not have the actual liability for the settlement – they ensure payment. The liability always rests on the principal – the person or company that caused the damages in the first place.

Types of Texas Surety Bonds

There are many types of Texas surety bonds, and Viking Bond Service specializes in each one. These are a few of the bonds most commonly required:

• Commercial bonds are also known as license and permit bonds. They are often needed as part of the licensing process and are required by state regulations. Common license bonds include liquor bonds, auto dealer bonds, and P-5 bonds.
• Contract bonds guarantee that contracts will be fulfilled and are frequently used in the construction industry. Common contract surety bonds in Texas include bid bonds, construction bonds, performance bonds, supply bonds, and maintenance bonds. They provide financial protection for the parties involved in a contract and can work as a guarantee that work will be paid for and completed to specifications.
• Court Bonds are required by a judge as part of some civil and criminal trials. Examples include receivership bonds or replevin bonds. All court bonds hold the principal responsible for following the court's judgment.
• Fidelity Bonds will compensate a business or its customers for damages caused by rogue employees. These bonds are not mandatory. Companies choose to obtain them as protection against a common risk. Examples include janitorial services bonds (for cleaning companies) and business services bonds (for general businesses).

There are many additional surety bonds Texas state and local governments and companies require, including alcohol tax bonds, utility deposit bonds, and notary bonds.

Who Needs a Surety Bond in Texas?

Many Texans and people doing business in the state need surety bonds. Some may only need them once, while others will need one occasionally or even regularly. That list includes many companies and professionals who must obtain Texas surety bonds as part of the mandatory licensure process.

Contractors and construction companies also face heavy bonding requirements because individual jobs can require multiple bonds. In addition, private individuals may also need surety bonds, whether as part of court proceedings or to build trust with another party.

Surety bonds have proven to be highly effective for managing risk, establishing trust, and ensuring accountability. If you need a surety bond in Texas, we will help you get one without delay.

How to Get a Surety Bond in Texas

Viking Bond Service makes getting a surety bond in Texas a snap. In just three simple steps, you will receive a competitive quote:

• Complete our online bond application.
• We will perform a credit check.
• If we need additional documentation, you'll provide it.

There is no charge to get your surety bond quote – just peace of mind and the ability to do business.

The Cost of Texas Surety Bonds

The cost of surety bonds in Texas is typically a tiny fraction of the bond amount, usually 1%-5%. So, for a $10,000 bond, you can expect to pay between $100 and $500. Many bond types have mandatory amounts mandated by the bond obligee. The premium you pay is based on your credit, which helps the surety identify the risk level of your bond.

Viking Bond Service specializes in helping all Texas business owners, including those with poor credit, acquire an affordable bond.

Do You Need to Renew Surety Bonds in Texas?

Some surety bonds in Texas, like commercial bonds, require renewal. Since getting and keeping a professional or business license requires these bonds, a principal needs an active bond for as long as they have an active license. Bond term limits are usually 12 months, but longer and shorter terms are possible. Renewal will involve undergoing another credit check which underwriters will use to adjust premium prices up or down based on credit score changes.

Get Your Free Texas Surety Bonds Quote Today!

Whether you're looking for a contract or commercial surety bond, the Viking Bond Service team is here to help with all your Texas surety bond needs. We make the bonding process quick, inexpensive, and hassle-free. Contact us online to explore the details of any bond you need, or call 1-888-2-SURETY (1-888-278-7389). Choose Viking Bond Service - your surety bond partner!