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Florida Sellers of Travel Surety Bond
What is a Florida Seller of Travel Bond?
A Florida Sellers of Travel Bond is a surety bond in an amount up to $25,000 that is required to be posted by a person or entity that sells or promotes travel related services in Florida. A $50,000 bond is required for those selling vacation certificates. This bond is also called a Florida Travel Agency Surety Bond.
The bond amount is determined by the business’s total revenue from the prior year. There are four tiers of revenue, each tier requires a different performance bond amount:
$10,000 bond: First-year applicants or revenue less than $500,000
$15,000 bond: Revenue between $500,000 and $1 Million
$20,000 bond: Revenue between $1 Million and $2 Million
$25,000 bond: Revenue greater than $2 Million
A seller of travel is defined as any business, corporation, firm, or person who offers for sale prearranged travel or tourist-related services in Florida through tour or vacation packages, or through vacation certificates in exchange for a commission or fee. A seller of travel also includes anyone offering membership in a travel club or travel service for an advance payment.
A vacation certificate is defined by the state as “any arrangement, plan, program, vacation package, or advance travel purchase that promotes, discusses, or discloses a destination or itinerary or type of travel, whereby a purchaser is entitled to the use of travel, accommodations, or facilities for any number of days, where certain or uncertain, during the period in which the certificate can be exercised, and no specific date or dates for its use are designated.”
Florida Travel Agency Surety Bonds are individually underwritten so the cost can vary and is dependent on the personal credit report of the applicant as well as experience. Applicants with good credit scores (generally 680 or higher) that have experience in the industry pay as low as 1% of the total bond amount. Of course, we will always provide you with the lowest rates available on the market. And can typically handle all credit types - from excellent to poor - as such those terms vary.
Florida Sellers of Travel Surety Bonds can be issued at 1% of the total bond amount (so, $250 for a $25,000 bond) for applicants with good credit scores.
Florida Travel Agency Bonds are in place to protect consumers against fraud, misrepresentation, breach of contract, or financial failure by the travel agency (Principal). The surety bond also protects against any violation by the Principal of the Florida Sellers of Travel Act, which is any provision of Florida Statutes, Sections 559.926-559.939.
Sellers of Travel are required to register with the Florida Department of Agriculture and Consumer Services (FDACS). The security requirement in the form of a surety bond is required in pursuant to Florida Statutes, Section 559.929. The surety bond must be completed and submitted with the registration application. The Obligee on the bond reads as the state of Florida, Department of Agriculture and Consumer Services.
Florida Travel Agency Surety Bonds continue in force from the effective date until canceled. The bond may be canceled by the Surety by giving 30 days written notice to the Obligee (FDACS). The bond will be renewed and billed for on an annual basis until the Obligee waives the bond requirement. The bond requirement may be waived if the Principal (travel agency) has had at least 5 consecutive years of experience in the state while remaining compliant with the Florida Sellers of Travel Act, has not had any civil, criminal, or administrative actions brought against the Principal in the travel and vacation business, and has held a satisfactory consumer complaint history with the FDACS. The seller of travel must complete a Sellers of Travel Act Security Waiver Application once they meet the previously stated requirements. This waiver does not apply to Principals that prearrange travel or tourist-related services directly to any terrorist state and which originate in Florida.
Contact The ProSure Group. As surety bond experts in business for over 23 years in Florida, The ProSure Group has issued hundreds of Travel Agency Bonds 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.