Surety bonds in Texas
Texas has an enormous business base, and surety bonds turn up across construction, transportation, energy, and auto sales. Remember that the bond protects the public and the obligee — the bonded Texas business generally repays the surety for any claim paid, so it is not insurance protecting the business.
Bonds commonly required in Texas
Contractor / Permit Bond
Many Texas municipalities require contractors to post a bond as a condition of local permitting.
Motor Vehicle Dealer Bond
Dealers are commonly required to carry a bond meant to address certain sales and title violations.
Notary Public Bond
Texas notaries are generally required to carry a bond that protects those harmed by notarial errors.
Freight Broker Bond
With Texas’s vast logistics activity, property brokers may need a federally tied bond protecting carriers and shippers.
Mortgage / Lending Bond
Mortgage and lending licensees may be required to maintain a surety bond.
Performance & Payment Bonds
Public construction frequently requires these bonds to assure completion and payment to subcontractors.
With requirements that vary by city and license, confirm the exact bond with the obligee or your Texas licensing authority, then request a quote.
A surety bond protects the party requiring it (the obligee) and the public — it is not insurance for your business. If a claim is paid, the principal generally repays the surety. Bond requirements and amounts are set by the obligee and vary by license type and jurisdiction. Verify the exact requirement before you buy.
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