Texas Surety Bonds

Surety Bond Requirements in TX

Texas requires surety bonds for building contractors, title insurance agents, escrow officers, and other professionals to conduct business in the state.

Building contractor’s bonds are required by many municipalities rather than by the state itself, making the process variable depending on where the contractor works.

However, title insurance agent bonds and title escrow agent bonds are required by the state, specifically the Texas Department of Insurance, which also sets the required bond liability amounts (maximum claim coverage).

If you need a surety bond to comply with state or municipal bonding regulations, we can help. NNA Surety Bonds has been a national bond provider since 1957. We’re your one-stop shop for license and permit bonds in Texas.

We offer the following surety bonds in the state of Texas:

Building Contractor’s Bond

If you are a building contractor in Texas, you most likely will be required to post a bond in order to do business. Unlike in many other states, the authority requiring the bond is a city or municipality, not the state government.

As a result, there is wide variation in bond coverage amounts, which can range from as little as $1,000 to as much as $50,000 or more, depending on where you are working. As an example of what your cost could be, if your municipality requires you to post a $25,000 building contractor’s bond, the annual premium would be $125.

Texas builders should understand that the required building contractor’s surety bond is a license bond, not a contract bond. Contract bonds, also referred to as performance bonds, are separate bonds which are specific to one project, and typically required by project managers when working on large projects.

Escrow Officer’s Schedule Bond

In Texas, escrow officers are appointed, usually by a title insurance agent, and must be licensed by the TX Department of Insurance. An escrow officer’s surety bond is also required.

The necessary bond amount is calculated by multiplying the number of employed and appointed escrow officers by:

  • $5,000 for each individual who is bona fide Texas resident.
  • $10,000 for each individual who is a bona fide resident of a state adjacent to Texas.

Title Insurance Agent Bond

The Texas Department of Insurance requires individuals and companies acting as title insurance agents to post a surety bond as a licensing requirement. The details are spelled out in the Texas Insurance code, which requires the bond and outlines a formula for determining the bond liability amount, which starts at $10,000 and ranges up to $50,000.

To determine your annual premium and the necessary bond liability amount for a Texas title insurance agent bond, just call NNA Surety Bonds and we’ll be glad to help you sort it all out.

Texas Surety Bond Costs
Bond Name Coverage Amount Cost
(Annual Premium)
Regulatory Authority
Building Contractor's Bond $25,000 $125* Cities and municipalities
Escrow Officer's Schedule Bond $10,000-$100,000 $100-$1,000* Texas Department of Insurance
Title Insurance Agent Bond $10,000-$50,000 $100-$500* Texas Department of Insurance

* Cost can vary depending on the bond amount required and your credit rating

Our knowledge of TX bond requirements enables us to provide accurate quotes quickly. For guidance through the process of selecting surety bonds in Texas, whether you're starting a new business or renewing an existing bond, talk to one of our experts today.

For faster service, call us at 855-215-2160
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