Texas Surety Bonds,
issued fast — serving
Houston for over 50 years.

A surety bond is a three-party agreement that guarantees a person or business will fulfill a legal or contractual obligation. The three parties are the principal (you), the obligee (the agency or party requiring the bond), and the surety (the company that issues the bond). If the principal fails to meet their obligations, a claim can be filed against the bond, and the surety pays out — up to the bond amount — before seeking reimbursement from the principal.

You pay only a small percentage of the total bond amount, called the premium — typically 1% to 10% based on your credit score and the bond type. For example, a $50,000 Texas auto dealer bond might cost between $263 and $2,500 for the full two-year term. With a credit score of 700 or higher, most applicants pay in the 1–3% range.

Most standard bonds are approved and issued the same business day. Simple license and permit bonds like notary or auto dealer bonds can often be issued within an hour. Larger or more complex bonds — like construction performance bonds — may require financial review and take 24 to 72 hours.

Yes. We work with applicants across the full credit spectrum. Applicants with lower credit scores typically pay higher premiums (up to 10% of the bond amount), but bonds are almost always obtainable. License and permit bonds are the easiest to secure with credit challenges.

Insurance protects you, the policyholder, from losses. A surety bond protects the public or a third party from your failure to meet an obligation. With insurance, the insurer expects to pay claims out of the premiums it collects. With a surety bond, the surety expects zero claims — if one is paid, you must reimburse the surety in full.

It depends on your industry. Auto dealers, contractors, notaries, freight brokers, mortgage brokers, public adjusters, and many healthcare and service providers are required by Texas state law or federal regulation to post a surety bond. Some City of Houston contracts — like sidewalk, driveway, curb, and gutter work — also require a $2,000 city bond. Contact us if you are not sure which bond applies to you.

Bond terms vary by bond type. Texas auto dealer bonds are issued for a fixed two-year term to match the GDN license cycle. Notary bonds last four years. Most other license and permit bonds are issued for one year and renew annually. Contract bonds (bid, performance, payment) last for the duration of the specific project.