Florida Seller of Travel Bond Requirements
The Florida Department of Agriculture and Consumer Services requires that all travel agents post a seller of travel bond. It’s a type of surety bond designed to protect the state and consumers from fraudulent actions on part of travel agents. These may include:
- Failing to honor a vacation cancellation request
- Not refunding purchaser in a 30-day period
- Working without renewing registration with the Department
- Selling vacation packages which expire more than 18 months from date of issue
The Florida Statutes, Sections 559.926 through 559.939, contain all provisions that travel agents need to comply with in order to stay out of claims. Surety bond claims can be made if a travel agent is guilty of a violation of any applicable regulation. In case the claim is proven, they will have to reimburse the claimant for the losses incurred.
Florida Seller of Travel Bond Cost
The total bond amount of your travel bond, i.e. the maximum coverage offered to claimants, depends on the type of services your offer. Travel agents who do not offer vacation certificates need to obtain a surety bond up to $25,000. Travel agents who do offer them are required to procure a $50,000 one.
To get bonded, a travel agents need not pay the full amount, but a yearly premium. Premiums are set by bond underwriters after an evaluation of the business’s credit history and financial records. The most important determinant is the personal credit score of the owner or owners. Applicants with a high credit score pay as little as 0.75% to 2.5% of the total bond amount.
To learn more about how much your seller of travel bond might cost you, visit our surety bond cost guide, where you will find some useful cost-saving tips and a free surety bond cost calculator.
Florida Seller of Travel Bond with Bad Credit
Applying for a surety bond with bad credit is a bit more complicated because there is a higher risk involved for bond underwriters. They mitigate the risk by offering a higher premium, normally in the range of 5% to 10%.
However, since other factors can also be factored in when applying for a surety bond, you can somewhat offset the effect of a low credit score on your premium. Our surety agents can work with you in building a strong application, which will guarantee that you get the lowest possible quote from bonding companies.
Working on improving your credit situation will mean a lower renewal premium next time around. You can focus on improving your credit score and taking care of past due items in your report.
Florida Seller of Travel License Application
To become a travel agent in Florida, you will need to take care of a few other requirements other than posting the seller of travel bond. These include:
- Pay a $300 nonrefundable fee
- Complete the registration form
- Submit the relevant seller of travel bond form
- Yearly renewal ($50 filing fee)
Before you start you application, get in touch with the Department of Agriculture and Consumer Services and ask for a full list of licensing requirements.
Get your Florida Seller of Travel Bond Today!
You now have all the information to begin your online application. Our simplified procedure includes only one page. We’ll contact you shortly after submission and, based on the information you provide, give you a free bond quote.
The bond application process varies on a case-by-case basis, but it’s not complicated. We will let you know if we need any additional documentation, or simply proceed to issue your bond. Under normal circumstances, processing times are no longer than one or two business days. Do not forget to call us at 866.450.3412 if you have any questions about your seller of travel bond.