Popular Surety Bonds in Fort Worth, Texas
Overview of Fort Worth Surety Bonds
When you apply for a business license or permit in the city of Fort Worth you may be required by state and municipal law to post a license bond. In Texas, these bonds are commonly required of businesses such as auto dealers and freight brokers but also by contractors, credit services organizations, public adjusters, phone solicitors, mortgage brokers, sellers of fuel and more.
Contractors who wish to perform work on federal or public works projects in the city are likely to need one or a number of contract bonds before they can commence work. These bonds guarantee that bonded contractors will comply with the conditions of their contract as well as pay for any services or materials received by subcontractors under the contract.
For example, when performing work on a public works contract in excess of $100,000 in Fort Worth, contractors need to obtain a performance bond as well as a payment bond, according to the Texas Government Code, Chapter 2253.
Courts in Fort Worth may also request surety bonds in certain instances. If someone is appointed fiduciary or guardian, the court may request them to get bonded. Similarly if someone appeals a court judgment made against them, the court may require them to obtain a bond before they can appeal.
The function of all of the above bonds is to provide guarantees that the bonded parties will comply with the conditions of the bond agreement which is based on compliance with state and municipal law. When a bond agreement is violated by a bonded business or individual, and such violation leads to losses or damages to the state or the public, the surety bond ensures that compensation will be extended to the latter. Depending on the situation, such compensation can be as high as the full penal sum of the bond.
Learn more about surety bonds through our detailed ‘What is a surety bond’ guide!
See below to find out how much your bond may cost, what a bond claim is, and how to get bonded.
Call us at 866.450.3412 if you need more information about the bonding requirements in Fort Worth!
Cost of Your Surety Bond
The cost you need to pay to get bonded is a percentage of your bond’s full amount.
When you apply for a bond with a surety bond company, the surety will look at your credit score along with other personal financial information to determine the rate at which it can issue a bond for you. Applicants who have high credit scores, 700 FICO or above, typically get the lowest rates because they are seen by sureties as being less risky to be bonded. Such applicants can easily get bonded for as little as 1% of the total amount of their bond, though rates vary depending on bond type.
For example, public insurance adjusters in Texas need to obtain a $10,000 bond to get licensed. If you are given a rate of 1.25% on your bond by the surety, you will need to pay $125 to get bonded.
Find out how much your bond will cost by submitting a bond application. We will provide you with a free quote on your bond shortly!
Bonds With Bad Credit
If you need to get bonded but currently have a low credit score, our Bad Credit Program is just right for you!
Under our program, applicants with lower scores can get bonded as fast and as easy as those with higher ones. The only difference are the slightly higher rates requested by sureties under these conditions. Based on improvements in your credit score, you can get increasingly better bonding rates each time you apply for a bond!
See the program page to request a quote and find out more about the conditions of the program!
A claim can be filed against a bond when the bond’s conditions are violated by the bonded party.
For example, in order to perform work on Fort Worth’s right-of-way contractors must obtain a $25,000 surety bond before they can get licensed. The surety bond is known as a Street and Storm Drain Contractors Bond.
According to the bond form, the bond is conditioned to guarantee that contractors who perform such work will comply with the conditions set out in ordinance No. 3449 of the City of Fort Worth. It also guarantees that the contractor performing such work will hold the city harmless and fully compensate it for any damages that arise as a result of performing such work. The bond also requires that contractors must maintain and repair such work for two years after completing it.
So if a contractor violates any of these conditions a claim can be made against their bond to compensate the city. Such compensation can be as high as the full amount of the bond. Under the bond agreement, if compensation is extended by a surety, the bonded party (in the above example - the contractor) must reimburse the surety in full.
Reversely, if no claim against a bond is made, the only cost that a bonded business or individual carries is the cost of getting bonded.
Get Your Bond Today!
Submit our a bond application form to get a free quote and full details on completing your application!
Your bond will be issued within two working days of receiving your application papers. As soon as your bond is issued, we will forward it to you via email and standard mail.
Call us anytime at 866.450.3412 to speak to one of our bond professionals!