Surety Bonds for Texas Businesses and Individuals
Lavon Insurance helps contractors, businesses and individuals get the surety bonds required for licenses, permits, contracts, vehicle titles, utility deposits and court cases. Many common bonds can be purchased online in minutes, and we help with the ones that need more underwriting.
- Many bonds approved and issued online in minutes
- License, contractor, title, utility and court bonds
- Independent agency with access to multiple sureties
- Help with larger and harder-to-place bonds
- Local Texas agency serving the whole state
What Is a Surety Bond?
A surety bond is a three-party financial guarantee that you will meet a legal, regulatory or contractual obligation. If you don’t, the obligee can make a claim against the bond.
Principal
You: the person or business required to get the bond and meet the obligation.
Obligee
The government agency, court, utility or project owner that requires the bond.
Surety
The company that issues the bond and guarantees your obligation to the obligee.
Unlike insurance, a surety bond doesn’t protect the person who buys it. If the surety pays a valid claim, the principal is generally required to repay the surety under the indemnity agreement signed when the bond is issued.
Find Your Texas Surety Bond
Choose a category to learn about requirements, bond amounts and how to apply.
Construction & Contractor Bonds
Bonds for bidding, performing and paying on construction projects.
Trucking & Transportation Bonds
Bonds for Texas permits, motor carriers and freight brokers.
Motor Vehicle Bonds
Bonds for vehicle titles and Texas dealer licensing.
Utility Deposit Bonds
Use a bond instead of a cash deposit where the utility accepts it.
License & Compliance Bonds
Bonds required to get or renew a Texas license or permit.
Court, Public Official & Notary Bonds
Bonds for estates, appeals, elected officials and notaries.
Don’t see your bond? Search our online bond portal or call us at (972) 853-8884.
How Much Does a Surety Bond Cost?
You pay a premium, not the full bond amount. Many small license and permit bonds have a flat minimum premium, and larger bonds are often priced as a percentage of the bond amount, commonly 1% to 3% a year for applicants with strong credit.
| Factor | How It Affects Your Premium |
|---|---|
| Bond amount | The amount set by the obligee. Higher bond amounts mean higher premiums. |
| Type of bond | Low-risk license bonds are often priced at a flat rate, while contract, court and financial guarantee bonds need more underwriting. |
| Credit | For many commercial bonds, personal credit is a major pricing factor. Many bonds are still available with less-than-perfect credit, at a higher rate. |
| Financial strength | Contractor and larger bonds may require business financial statements, work history and capacity review. |
| Term | Most license bonds renew annually, while some court and project bonds are priced for the length of the obligation. |
Surety Bond vs. Insurance
Surety bonds are sold through insurance agencies, but they work very differently.
| Feature | Surety Bond | Insurance |
|---|---|---|
| Who it protects | The obligee, such as a state agency, court or project owner | You, the policyholder |
| Number of parties | Three: principal, obligee and surety | Two: insured and insurer |
| Who ultimately pays a claim | The principal repays the surety for valid claims | The insurer, after your deductible |
| How it’s priced | Based on the principal’s credit, finances and ability to perform | Based on the expected cost of losses |
Why Use a Surety Bond?
Meet Legal Requirements
Many Texas licenses, permits, contracts and court orders can’t be issued until the required bond is filed.
Keep Your Cash Free
Where accepted, a bond can take the place of a large cash deposit, such as a utility deposit.
Win More Work
Bid, performance and payment bonds let contractors pursue public and larger private projects.
How to Get a Surety Bond in Texas
Identify the Bond
Confirm the bond type, bond amount, obligee and any required bond form from the agency or contract.
Apply Online or Call
Many bonds can be quoted and purchased online. For larger or complex bonds, we gather the underwriting information for you.
Receive and File Your Bond
Once approved and paid, you receive the bond to sign and file with the agency, court or project owner.
Referring a Client Who Needs a Bond?
Attorneys, title companies, contractors, accountants, trucking professionals and other advisors send clients to Lavon Insurance when they need a dependable surety bond resource.
Send us the client and the bond requirement. We’ll review the request, guide the application and help get the bond issued while respecting your client relationship.
Common Referral Requests
- Probate and guardianship bonds for attorneys
- Bonded titles for title services and dealers
- Contractor bonds for builders and subcontractors
- Freight broker and permit bonds for trucking
- License bonds for new Texas businesses
Frequently Asked Questions About Surety Bonds
Is a surety bond the same as insurance?
No. A surety bond protects the obligee, such as a state agency or project owner, and the principal generally must repay the surety for any valid claim. Insurance protects the policyholder.
How much does a surety bond cost?
You pay a premium, not the full bond amount. Many small license bonds have a flat minimum premium, and larger bonds are often priced at a percentage of the bond amount, commonly 1% to 3% a year for applicants with strong credit.
Can I get a surety bond with bad credit?
Often yes. Many bonds are available to applicants with less-than-perfect credit, though the premium may be higher and some larger bonds may require additional underwriting.
Can I buy a surety bond online?
Yes. Many common Texas bonds can be quoted and purchased online through our bond portal. Larger or more complex bonds may need additional underwriting or documents.
How quickly can I get a surety bond?
Many common bonds can be approved and issued the same day, sometimes within minutes. Larger contract, court or financial guarantee bonds can take longer to review.
What happens if a claim is made on my bond?
The surety investigates the claim. If it pays a valid claim, you are generally required to repay the surety under the indemnity agreement you signed when the bond was issued.
What information do I need to apply for a bond?
You’ll usually need the principal’s legal name and address, the bond type and amount, the obligee’s information and any required bond form. Some bonds also require business, credit or financial information.
Do surety bonds need to be renewed?
Many license and permit bonds renew annually for as long as the license is active. Court and project bonds usually stay in force until the obligation is complete.
Does Lavon Insurance offer surety bonds throughout Texas?
Yes. We help customers across Texas with many types of surety bonds, subject to surety availability and underwriting.
Surety Bonds in Lavon, Dallas and Across Texas
Lavon Insurance is an independent agency in Lavon, Texas. We help businesses and individuals statewide, including these North Texas communities:
Get Your Texas Surety Bond
Start online in minutes, or call us if you need help identifying the bond your license, permit, contract or court case requires.
Bond availability, pricing, approval and terms are determined by the surety company and depend on the bond type, amount and applicant’s underwriting. This page is general information and is not legal advice or a guarantee of approval.