Texas Surety Bonds
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Common Surety Bonds in Texas
These are the more common bonds in your state. For a list of all of your state’s bonds and federal bonds available click the big blue button for more! If it’s not listed, contact us and we’ll add it.
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Texas Instant Surety Bonds

How to Get a Surety Bond in Texas
Your Guide to Surety Bonds in Texas
The most common bonds required to conduct business include those for contractors, auto dealerships, texas notary bonds, immigrant consultants, freight brokers and cannabis operators. Mortgage brokers, insurance brokers and talent agencies also need to equip themselves with a surety bond ensuring compliance with municipal and state regulations before they can work on behalf of their clients.
When required, a Texas surety bond is tied to a performance obligation. The obligation can take various forms whether that be completion of a construction contract, advance payment to a contractor or payment guarantees to subcontractors. For construction projects, Texas contractor bonds are often required by law to protect the interests of the public, consumer and the company itself. Surety bonds provide assurance the project will be completed on time, of agreed specification and under the conditions laid out in the contract.
Surety bonds in Texas are often required to ensure professional obligations as well. There are numerous non construction or payment related performance obligations that revolve around licensing, permitting and probate.
You can find surety bond Texas companies online or even in your local area. However, the surety bond company, or surety insurance company, that is going to be best for you might not be located nearby which is why you need a Texas surety bond expert to help.
At Simpli Surety, we are your hassle-free, cost-friendly direct surety bond provider in New Jersey. No drawn out quote process, our instant issue platform has surety bonds delivered to your inbox in minutes!
What is a surety bond? How does a surety bond work?
It’s a type of contract that safeguards another party from financial loss. In the case of surety bonds, there are three parties:- Principal (the person or business which needs to secure their liability)
- Surety (a third party, often an insurance company, who agrees to assume responsibility for the debt and acts as guarantor)
- Obligee (the person or business for whom the surety bond is being issued)
1) Principal’s ability to perform a service and or repay a debt if necessary
2) Surety’s obligation should they become financially liable because the Principal fails to meet their obligations under the contract
What is a surety bond used for?
Whats a surety bond you ask? Well, it guarantees an agreement between three parties by securing the obligation in that it is used to:– To secure performance on contracts;
– Guarantee compliance with contract specifications and standards;
– A warranty against defective products;
– Secure licensed professionals such as mortgage lenders
When do you need a surety bond?
Surety bonds are a form of performance security or financial guarantee issued by an insurance company. They are required for a variety of financial transactions, from government procurements to import and export. In the United States, bonds have been used since 1749 to guarantee that a party will fulfill its obligations under a contract or agreement.Texas bonds work as an integral part of any business’s success – just ask anyone who has ever missed a deadline! Typically a transaction, contract, or professional licensing requirement will indicate if a performance bond, payment bond, contract bond, license and permit bonds, or another type of bond is needed.
What are contract bonds?
A large category of Texas bonds are called contractor bonds, or bonds specific to the construction industry. TX contractor surety bonds more commonly are performance bonds, bid bonds, and payment bonds. Construction bonds account for approximately 70% of all bonds written in the USA. Required by residential and commercial contractors both big and small, general and across specialty trades. Texas surety bonding requirements vary by municipality and ensure protection of the public and consumers via performance bonds for public projects and various trade bonds.Can I get a surety bond online?
Yes. At Simpli Surety, we have 1000s of instant issue surety bonds available to our clients on-demand at low surety bond rates. Our surety bond experts are here to help.How much does a Surety Bond cost?
If you are looking for surety bond cost, the good news is that it’s not as expensive as most people think. Across the industry, Surety bond costs can range depending on the type and terms of the bond. The fee is calculated, also called the surety bond premium, as a percent of the total coverage needed or bond amount, usually ranging anywhere from 1% to 3%. For instance, straightforward license and permit bonds tend to fall on the lower end of the spectrum even below 1%. While a more complex performance bond for a large construction project that carries a higher risk and bond amount, therefore, the surety bond cost can range higher between 1.5% to 2.5% on average.
Surety bond costs could be higher or lower depending on your surety company, the type of work you are doing, and other factors. If you need help determining how much a surety bond will cost for your specific situation, use our search to find the instant issue bonds you need, and often the surety bond cost and bond amount are listed on the application.
At Simpli Surety, we have 1000’s of instant issue surety bonds available to our clients on-demand at a low surety bond rate. The application and approval process is completed quickly, so you can get back to your business.
On the rare occasion, your bond application requires additional underwriting, our surety bond agents with over 40 years of experience will step in to help.
How to Obtain a Bond in Texas
Texas is well-known for its energy, oil and gas industry but it’s also home to insurance and financial services. In fact, the commercial/financial sector accounts for nearly one-third of its GDP (gross domestic product).
Oil and gas are actually the second biggest contributor to the Texas economy, just after technology. And it’s not surprising considering how much land is available for exploration in this state – more than 85 million acres of which are onshore and offshore areas open for bidding.
Another large industry in Texas is food processing, which accounts for more than $11 billion of the state’s economy every year! And not only does it employ over 100,000 employees directly across 120 cities, but also provides work to thousands of others indirectly through transportation activities or by providing materials used in manufacturing different food products. All in all, the industries of Texas are vast and diverse, from technology to oil and gas, from food processing to aerospace engineering or biomedical research.
Why would I need a surety bond in Texas?
Surety bonds are financial guarantees that you promise to abide by the terms of an agreement. For example, if you enter into an Enterprise Zone Program with this state, it is required for your business to have one. Other reasons why businesses may require these include:
– To qualify for a license
– Government contracts
– Bonding construction projects
– Organizing as a corporation or limited liability company (LLC) in Texas. . . etc.
What surety bonds are common in Texas?
Another common surety bond in Texas is the contract performance or payment and commercial surety bonds. You can get this type of surety bond if you plan to make a purchase over $500,000 on credit (or use your personal funds), but need some extra help covering warranty and return costs for defective products that may arise.
This type of surety bond can be used by companies that provide construction and engineering services, such as architects or engineers.
Is it easy to get a bond in Texas?
It actually is! The state of Texas has made it really simple and fast to apply for a surety bond. If you choose to get your bond online with Simpli Surety, the process can be completed within minutes!
What are the minimum bonding requirements in TX?
The amount of money required for a surety bond in Texas ranges depending on the industry and type of contract or agreement you plan to enter. There is no minimum amount for this type of bond, but our surety partners have to be compensated for any losses they incur on your behalf.
What government agencies require surety bonds in Texas?
First, surety bonds are required by the state for many businesses. There are many government agencies that require surety bonds in Texas, including the Department of Transportation (DOT), Health and Human Services Commission (HHSC) or Housing Assistance Council. Others include:
– Department of Agriculture and Consumer Services
– State Board of Dental Examiners
– General Land Office Commissioner’s Court. By law, you have to get an insurance bond from one of the state approved carriers if you want to sell real estate in Texas.
Professional service providers such as architecture and engineering firms; assisted living facilities; barber shops and salons that provide haircuts to minors under age 18 or have a cosmetology license. The surety bond is meant as protection from any damages caused to customers of these types of companies.
The surety bond is also required for Community Housing Development Organizations (CHDOs) by the state. CHDOs are meant to create affordable housing opportunities in rural areas of Texas. These bonds act as protection if the homes created result in substandard living conditions/standards or poor maintenance, among other reasons determined by state law.
Finally, surety bonds are required by the Texas Department of Insurance for insurance agents and agencies. This bond acts as protection against any misappropriation or mishandling of client’s funds/insurance premiums that these businesses handle.
What are the most popular types of surety bonds in TX?
The surety bond requirements vary depending on the industry you plan to be in. In Texas, surety bonds are required for a wide range of industries and services including:
– Aircraft Maintenance Service Provider Bond
– Construction Supervisor License Surety Bond
– Design Professional Liability Insurance Policy or Certificate of Insurance for Architects & Engineers
– Employee Dishonesty Bond for Taxicab Operators, Limousine Operators & Transportation Network Companies (TNC)
– Facilities Manager surety bond required by the Texas Department of Licensing and Regulation. If you plan to operate a child care services or elder daycare facility in Texas… you have to get surety bond coverage.
– General Contractor surety bond required by the Texas Department of Licensing and Regulation if you want to provide construction services in Texas.
– Public Adjuster surety bond is needed for Licensed Property Insurance Advisors (LPIAs) in case they promise an insurance company that they can help in the settlement of a claim.
Texas has a major construction industry that requires performance guarantees in the form of surety bonds or contractor license bonds to protect against failing to meet deadlines or walk off a project. There are also many contractors who require bond protection for their employees – especially when they’re working on bridges, tunnels or other public works projects for the Texas Department of Transportation for example.
What other surety bonds are common?
Common surety bonds across all states, are within the forever mainstay Construction industry. As a large and populous state, contracting is big business. Required by residential and commercial contractors both big and small, general and across specialty trades. Alabama’s bonding requirement varies by municipality and trade but all ensure protection of the public and consumers via performance bonds for public projects.
The best surety company in Texas is us! SimpiSurety has all of these bonds and more TX surety bonds available instantly. Search for your bond and apply online in minutes.
Although, whomever you choose, be sure they are a licensed surety bond agency in Texas that can help you get bonded for the right bond amount. All surety companies are not the same, so choose wisely when choosing your Texas bonding agent.
Types of Surety Bonds in Texas - State
Contractor license surety bonds aren’t only state mandated bonds for businesses. In fact many industries and professions that require licensing or the proprietor to register their business with a state commission or regulatory body require a surety bond, including:
- Texas Notary Bond – pledgers a notary will perform his or her duties required by the state in accordance with ethical standards and in compliance with state laws. The bond ensures client protection and credibility to the notary. Coverage $10,000 + E&O Buy Now
- Texas Mixed Beverage Sales Tax Bond – The Texas Comptroller of Public Accounts requires the issuing of a mixed beverage sales tax bond. In order to comply with state law, mixed beverage permittees are required to post two separate bonds as security for taxes: a 6.7 percent gross receipts tax bond and an 8.25 percent sale tax bond. All new businesses must obtain a Mixed Beverage Gross Receipts Surety Bond and a Mixed Beverage Sales Tax Surety Bond. The former $7,500 bond requirement has been halved and shared between both bonds, ensuring that each bond is worth $3750. Buy Now
- Texas Sales Tax – In Texas, a Sales Tax Bond (also known as a Continuous Bond of Seller) is required for those applying for or receiving a seller’s license and want to do business in the state. The sales tax surety bond guarantees that the amount is in line with all of the legislation’s standards and requirements, which are enforced by the Comptroller of Public Buy Now
- Texas Third Party Debt Collector Bond ($10,000) – All third-party debt collectors in Texas are required by the Texas Secretary of State’s Registrations Unit to submit $10,000 surety bonds. Third-party debt collectors promise to operate in accordance with the provisions of Chapter 392 of the Texas Finance Code after posting this bond. This bond protects any person who is harmed as a result of financial loss up to the bond penalty amount. Buy Now
- Texas Staff Leasing Service ($100,000) – The Texas Department of Licensing and Regulation requires that your firm be licensed if you operate a personnel leasing business (also known as a Professional Employer Organization). A Texas Staff Leasing Service Bond is one of the prerequisites for obtaining a license. Buy Now
- Texas Motor Vehicle Dealer ($25,000)– Texasns are not strangers to traffic. Used car, motorcycle and ATV dealers must secure an auto dealer bond as a part of the licensing process to ensure they are capable of and can maintain ethical business standards. Coverage to $25,000. Buy Now
Types of Surety Bonds in Texas - Federal
- Freight Broker Bonds – often referred to as BMC-84 bonds, are a Federal as opposed to state mandate made by the Federal Motor Carrier Safety Commission to conduct business as transportation brokers. Coverage to $75,000. Buy Now
- Durable Medical Equipment Provider Bonds – often referred to as DMEPOS bonds are required of suppliers of prosthetics, orthotics, and durable medical equipment. A federal mandate per the Centers for Medicare and Medicaid Services to mitigate Medicate billing fraud. Min bond requirement of $50,000 per National Provider Identifier needing Medicate billing authorization. Buy Now
- Performance Bonds – this bond covers general performance obligations related to a contract but most often ensures the satisfactory completion of performance by a contractor. The bond penalty is tied to contract value and can be mandated at federal, state, or municipal levels. Buy Now
- Bid Bonds – a construction bond that protects the developer or project owner of a construction project during the bidding process. It guarantees them that if the bidder can or will not honor the terms of the bid, the owner will be compensated. Bid bonds are commonly required on projects that also involve performance bids and payment bonds. Buy Now
- Payment Bonds – these surety bonds are often paired with performance bonds ensuring prompt payment to suppliers and subcontractors on the project. This signals to the owner, supplier, and sub that the contractor will be compliant in working with them to completion and paying on time. Buy Now
Surety Bond FAQ
What is a surety bond?
A surety bond is an agreement between 3 parties, the principal applying for the bond, the Obligee who benefits from the bond and the Surety, the provider of the bond. A licensed surety agency like Simpli Surety is required to act on behalf of the 3 parties to facilitate the bond issuance.
The bond itself ensures the principal will carry out its obligations to the Obligee that acquires their services, in accordance with the conditions of a contract.
The surety company steps in to financially back the Obligee in the event the principal defaults, violates terms or fails to fulfill its obligation. If the surety pays a claim, it seeks reimbursement from the principal.
How do I get a bond?
At Simpli Surety, we’ve taken the sometimes antiquated surety bonding process and made it…well…simple. What takes many brokers and online agencies days, we’ve automated to get your bond fast. From search to submission to getting a bond in your inbox in less time than finishing a cup of coffee.
- 1) Use our Search tool to find your bond.
- 2) Enter the key information and click submit.
- 3) A decision is rendered within minutes.
- If approved, you’ll be sent a payment link and documents to sign electronically. If not approved, our underwriters will alert you of next steps. Sometimes we just need a few more pieces of info to complete the analysis but in most cases, its automated and effortless.
- Your bonds are emailed to your and the Obligee. It’s that fast…and simple.
Why Simpli Surety?
Simpli Surety is a licensed surety bond agency. Our bond professionals have been in the industry for over 40 years. Most online surety bond agencies only provide a quote range, then needing to shop various surety carriers for the bond. This makes the surety bonding process longer and tedious.
Simpli Surety requires basic underwriting information and as soon as you click submit, in most cases we render a decision right away. If approved, simply purchase with a credit card and you’ll have your bond emailed to you and the obligee (beneficiary or regulatory authority) in minutes.
Our instant issue rates are the most competitive in the business. And for more complex bonding situations, our experts will step in and provide a bespoke solution.
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