San Antonio Surety Bond

From freight brokers to car dealers, many professionals need a surety bond in order to work in San Antonio. In addition, surety bonds are also required for some San Antonio court proceedings.

A San Antonio surety bond—like all surety bonds—is a financial guarantee that the bond holder (principal) will follow through with their contractual obligations. This may include specifics related to clients (ex. supply delivery for a construction project) and/or abiding by the ethics and laws surrounding a profession. 

While there are many different types of surety bonds, they all involve three parties:

• Principal: the business or individual that needs to get bonded.
• Obligee: the party requiring the principal to get the surety bond. Often a municipal government, trade organization, or other governing body. 
• Surety: the surety bond provider. The party that backs the bond financially. 

Example of How a San Antonio Surety Bond Works

A contractor (principal) is hired to do plumbing work for a building in San Antonio. As required by the city of San Antonio (obligee), the contractor gets a Texas General Contractor’s Bond. Work commences and finishes on schedule, but the final result isn’t up to code. The project owner files a claim against the contractor’s surety bond for damages, which the surety company (surety) pays initially. However, the contractor is responsible for full reimbursement. 
 

Bonding requirements in the State of Texas are plentiful—there are upwards of 150 types of Texas surety bonds—and many apply to San Antonio. In general, both large and small businesses in San Antonio have bonding requirements. This includes, but isn’t limited to, motor vehicle dealerships, mortgage brokerages, freight brokerages, and construction companies. However, one of the biggest bonding requirements is for contractors. In order to get licensed in San Antonio, certain contractors like plumbers and sign contractors are required to obtain a bond.

See more on the City of San Antonio website. 

You don’t need a surety bond unless an obligee requires one. However, it is your responsibility to know when a surety bond is needed. Operating without a required bond can lead to professional license loss or suspension, fines, and other penalties. 

Your obligee should be able to provide all the bonding details you need, including which bond you need and the bond amount. However, if you have not been given these details, there are a few options:

• Find Your Bond Online: Our Find Your Bond Tool is free, quick, and makes finding the right bond easy. Once you find your bond, it takes only another minute to get your free bond quote. 
• Contact the Experts: Try contacting your obligee or looking through their website for bonding requirements. Additionally, you can always talk to our surety specialists. We can let you know which bond you need, answer any questions, and guide you through the bonding process. 

Most types of surety bonds fit into three broad bond categories—license and permit bonds, contractor bonds, and court bonds. Below, we go over each surety bond category and the popular types of bonds they contain.

1. License and permit bonds – surety bonds that are needed for professional licensing or to conduct business. 
   • Auto dealer bonds
   • Contractor license bonds
   • DMEPOS Medicare bonds
   • Freight broker bonds
   • Third-party debt collector bonds
   • Sales tax bonds
2. Contractor bonds – surety bonds needed for contractors and construction companies to work specific jobs, like public construction projects. 
   • Bid bonds
   • Construction bonds
   • Payment bonds
   • Performance bonds
   • Supply bonds 
3. Court bonds – surety bonds required by a court to take part in certain proceedings. 
   • Appeal bonds 
   • Guardianship bonds
   • Probate bonds/fiducial bonds

Getting an Auto Dealer Bond

Auto dealers in Texas, including San Antonio, must get an auto dealer bond to sell cars. It is also commonly referred to as a motor vehicle dealer bond.

Obligee: Texas Department of Motor Vehicles

Bond Amount: $50,000

Apply for a Texas auto dealer bond

Getting a Freight Broker Bond

Every Texas freight broker needs a freight broker license, which requires a freight broker bond. This bond is also referred to as a BMC-84 bond. 

Obligee: Federal Motor Carrier Safety Administration (FMCSA)

Bond Amount: $75,000

Apply for a Texas freight broker bond

Getting a Contractor License Bond

While the State of Texas does not ask for a contractor license bond, the city of San Antonio requires certain contractors to hold a Texas general contractor’s bond.

Obligee: City of San Antonio

Bond Amount: Varies, depending on type of contractor

Apply for a Texas general contractor bond
 

On average, a San Antonio surety bond costs 1% - 5% of the total bond amount for those with good credit. 

For example, a $10,000 surety bond’s premium would be $100 - $500. 

Those with credit issues or those deemed high risk (likely to trigger a bond claim, unlikely to be able to pay back a bond claim, etc.) can expect to pay a higher premium if approved for a bond.

Get an instant free quote to find your rate. 

Yes, getting bonded with bad credit is possible for many types of bonds. 

While contractor bonds are harder to secure with credit issues, those with lower credit scores are often approved for licensing bonds and court bonds. However, if approved for these bonds with bad credit, they will have a higher premium—often upwards of 10%.

Check out our guide to Bad Credit Surety Bonds for more information.