Question 1

What is a commercial surety bond?

Accepted Answer

A commercial surety bond is a bond required by a government agency or obligee as a condition of obtaining a business license or permit. Unlike construction bonds, commercial bonds protect the public or government from business misconduct, fraud, or failure to comply with regulations. Common types include notary bonds, dealer bonds, contractor license bonds, mortgage company bonds, and court bonds.

Question 2

What commercial surety bonds are required in Texas?

Accepted Answer

Texas requires many types of commercial surety bonds depending on your industry: notary bonds ($10,000, Secretary of State), GDN auto dealer bonds ($50,000, TxDMV), TDLR contractor license bonds (various amounts), mortgage company bonds ($50K–$250K, TDSML), collection agency bonds ($10,000, OCCC), and freight broker bonds ($75,000, FMCSA). Quantum Surety issues all Texas commercial bond types instantly online.

Question 3

How much does a commercial surety bond cost in Texas?

Accepted Answer

Texas commercial surety bond premiums vary widely by bond type. Notary bonds are a flat $50 regardless of credit. GDN dealer bonds start at $100/year. TDLR contractor license bonds start at $75/year. Specialty bonds like mortgage company bonds and freight broker bonds are credit-based and range from 1%–3% of the bond amount annually. Same-day issuance on most types.

Question 4

What is the difference between a commercial bond and a construction bond?

Accepted Answer

Commercial surety bonds are license and permit bonds required as a condition of doing business — they protect consumers and government agencies from business misconduct. Construction surety bonds (bid, performance, payment) are project-specific bonds that guarantee contract performance. Most Texas contractors need both: a license bond to get their license, and construction bonds for specific public projects.