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Florida Indemnity Bond for a Liquefied Petroleum Gas License

What is a Florida Indemnity Bond for a Liquefied Petroleum Gas License?

  • The Florida Indemnity Bond for a Liquefied Petroleum Gas License is a surety bond that must be posted in lieu of an insurance policy in order to be licensed as any of the following in the state of Florida:
    • Pipeline system operator
    • Category I liquefied petroleum gas dealer
    • Category II liquefied petroleum gas dispenser
    • Category III liquefied petroleum gas cylinder exchange operator
    • Category IV liquefied petroleum gas dispenser and RV servicer
    • Category V liquefied petroleum gas dealer for industrial uses only
    • LP gas installer
    • Specialty installer
    • Manufacturer of liquefied petroleum gas appliances and equipment
    • Requalifier of cylinders
    • Fabricator, repairer, and tester of vehicles and cargo tanks
  • A $300,000 indemnity bond is required for category III liquefied petroleum gas cylinder exchange operators.
  • A $1,000,000 indemnity bond is required for all license categories except for category III licenses and dealers in appliances and equipment for use of LP gas.
  • Per Florida Statutes, liquefied petroleum gas is defined as any material which is composed predominantly of any of the following hydrocarbons, or mixtures of the same: propane, propylene, butanes (normal butane or isobutane), and butylenes.
  • Each business location is required to be licensed and therefore a separate surety bond is required for each business location.
  • The sale of liquefied petroleum gas cylinders with a volume of 10 pounds water capacity or 4.2 pounds liquefied petroleum gas capacity or less is exempt from having to be licensed and bonded.

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  • These Florida Indemnity Bonds are individually underwritten so the cost can vary and is heavily dependent on the personal credit report of the applicant as well as personal financials and business financials. Customers with good credit scores and good financials could qualify for a rate as low as 1% of the bond amount. Of course, we will always provide you with the lowest rates available on the market. And can typically handle all credit types and financial situations - from excellent to poor - as such those terms vary.
  • So for example, a $1,000,000 bond could cost as low as $10,000 for applicants with good credit scores and good financials.

This Indemnity Bond is in place to protect all persons from loss or damage by the Principal’s (LP Gas License Holder) failure to comply with any provisions, rules and regulations of Chapter 527, Florida Statutes, as well as Rule 5J-20.004, Florida Administrative Code.

TThe Florida Department of Agriculture and Consumer Services (FDACS) regulates and administers all liquefied petroleum related licenses. The Department requires a surety bond to be posted in pursuant to Florida Statutes, Section 527.04. The Obligee on the bond is the Governor of the State of Florida.

Florida Indemnity Bonds for LP Gas Licenses run from the effective date and remain in full force until canceled. The bond may be canceled by the Surety or the Principal by giving 30 days written notice to the Obligee. The bonding company will bill for and renew the bond on an annual basis.

Contact The ProSure Group. As surety bond experts in business for over 23 years in Florida, The ProSure Group has issued thousands of bonds of these types and has partnerships with more than 30 different surety companies. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.

What you will need to submit to obtain a license:

  • Completed Application
  • Applicable Fees
  • Surety Bond (Form FDACS-03518 or Form FDACS-03519)
  • Qualifier information (Letter of Transfer signed by qualifier, Examination Scheduling Request, or Qualifier Card)
  • Employee Background Checks
  • And more.
If you don't see the bond you're looking for give us a call at (800) 480-3883 and speak to one of our many
Florida Indemnity Bond for Sale of Liquefied Petroleum Surety Bond Experts!
Type Bond Obligee Bond Amount
License Florida Indemnity Bond for Sale of Liquefied Petroleum Gas Governor of the State of Florida
$1,000,000
License Florida Indemnity Bond for Sale of Liquefied Petroleum Gas Governor of the State of Florida
$300,000