Individuals or businesses that sell, install, service, and/or monitor an alarm system or burglary detection device must be licensed as an alarm system company by the Texas Department of Public Safety. To be approved for and maintain a license, a $10,000 Burglar Alarm Seller Bond (formally known as Seller’s Certificate Surety Bond) is required.
Jet Insurance Company provides the Alarm Seller Company Bond to act as a financial guarantee to the Texas public and the Department of Public Safety. If the licensee commits a breach of contract such as failing to provide a customer with their paid-for alarm system, the surety bond may be used to cover the financial losses incurred by the harmed party.
At Jet, prices for the $10,000 Burglar Alarm Seller Bond are a small fraction of the bond amount and are based on a credit check of the business owner. As shown in the chart below, our preferred tier rates start at just $100 annually or $10 a month.
Jet’s monthly payment plan is a great option if you don’t want to worry about renewing your bond annually. Your Burglar Alarm Seller Bond will remain active with the Texas Department of Public Safety as long as payments are made or until cancellation is officially sought.
Jet’s application for the Burglar Alarm Seller Bond is quick and easy, only asking for the information necessary to get you a quote (contact details and social security number for a soft credit check). Once submitted, a Jet underwriter will send you approved rate options to your email that are ready for immediate purchase. Simply choose the option that works best for you and fulfill the payment. You will then receive a copy of your receipt and bond form instantly.
The original signed and sealed Burglar Alarm Seller Bond must be submitted to the Texas Department of Public Safety’s Regulatory Services Center either through the Texas Online Private Security (TOPS) portal or by mail to the following address:
Texas Department of Public Safety
Regulatory Services Center
PO Box 4087
Austin, TX 78773
Initial and renewal license applications can be found on the TDPS Applications and Forms webpage.
If you enroll in our monthly payment plan, you won’t have to worry about renewing your Burglar Alarm Seller Bond as it will remain active as long as payments are fulfilled. As for bondholders who choose to purchase the surety bond in full and upfront, Jet will send you a renewal invoice prior to your official bond term expiration date. You simply need to complete the payment due and your bond will remain active for another term.
The Burglar Alarm Seller Bond may be cancelled at any time! All that is required is that you send Jet a written cancellation request to [email protected]. Once received, we will send notice of your bond’s termination to the Texas Department of Public Safety. The liability of your surety bond will be released within 30 days.
Jet will require monthly enrollees to complete one last payment for the 30-day liability period as your bond is technically still active during this time. All future payments will cease once this final step has been completed.
Alarm system companies are expected to follow all regulations pursuant to Title 10, Chapter 1702 of the Texas Occupation Code as it pertains to the rules and obligations of your license. Failure to comply may result in a loss of license or large fines at the hands of the Texas Department of Public Safety. Civil action brought on by a damaged customer is also a possibility.
A claim on the Burglar Alarm Seller Bond will typically only occur if your company fails to reimburse a customer for an alarm system or burglar detection device that was paid for by the customer, yet never delivered within the requirements of their customer contract. This is a breach of contract and the damaged customer has every right to pursue civil action against you. If this occurs and a Texas court rules in favor of the claimant, the surety bond may be used to recover the down payment or purchase price paid by the customer, as well as the cost of their attorney fees.
If you receive a Texas court-ordered bond claim notice, contact Jet as soon as possible. We will ask that you provide us with all available information and documentation regarding your case. These details will be used for our own investigation of the claim.
Per the Alarm System Seller Bond form, Jet Insurance Company must payout justified claims never to exceed the $10,000 limit. As a licensee, you are responsible for your own actions and the actions of your company employees. Therefore, you must reimburse Jet for the claim payout made on behalf of your transgression(s). Failure to do so will lead to future difficulties in obtaining surety bonds within the State of Texas.
No other surety bond is needed, however, a form of liability insurance is required. Further details can be found in Title 10, Section 1702.123 of the Texas Occupation Code.