Texas Conduct Bonds

TABC Alcoholic Beverage Business Bond

The Texas Conduct Surety Bond is a requirement for many permitted types of business serving or selling alcoholic beverages. The Texas Alcoholic Beverage Commission (TABC) is the state regulatory agency that ensures the bond is filed properly.

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Jet Insurance Company has the lowest rate available for this bond whether you need the $5,000 or $10,000 bond limit. We can do this by offering the bond directly to you instead of relying on agents and brokers in a traditional distribution platform. Get a quote now.

How Much Does the Texas Conduct Bond Cost?

With Jet the $5,000 Conduct Surety Bond costs $5 monthly or $50 annually. For the $10,000 Conduct Surety Bond the cost is $8 monthly or $75 annually. While most qualify for these rates, we do have to perform a check credit prior to offering the bond. Do worry as it will not affect your credit and it only takes a moment online to get your quote.

Bond TypeMonthly1 Year Term2 Year Term
$5,000 Bond for Permit Types BE, BG, MB, N, NB, NG, TR$5$50$88
$10,000 Bond for Permit Types BQ, P, Q (or if 1,000 ft of school)$8$75$131
Texas Conduct Bond Pricing

The bond limit required by the  TABC is based on permit type held by the business. Certain business types are considered to have more risk and therefore needed a larger $10,000 bond limit.

$10,000 Bond Limit Required:

Other permit types need a $5,000 bond limit, unless their business is within 1,000 feet from a school, in which case they need to procure a $10,000 surety bond.

$5,000 Bond Limit Required:

Who Needs to Have a Texas Conduct Bond and Why?

The permit types listed above need to have the bond if they do not hold a Food and Beverage (FB) certificate with the TABC. Additionally, if the company keeps a clean record for five years the bond will no longer be required! That's right, here we are offering a service and are very excited to let you know you do not need it if the following applies to your permit:

  1. License/Permit has not been revoked in past 5 years
  2. No pending license/permit revocation or cancellation
  3. Continuous operation for 3 years

Why the bond is needed is hinted in the name of the bond: Conduct Surety Bond. The TABC wants good and upstanding conduct from those they issue permits to. Fines and punishments will be levied upon a permit holder should they violate Texas State Law. For example, retail alcohol permit holders should not serve alcohol to a minor or intoxicated person or work while intoxicated. 

How to Apply for a Conduct Surety Bond With Jet

The Jet team has created a quick and efficient online application process. Simply click the button above to begin your application. General information is required such as your contact details, license or permit type, and social security number.

For nearly all applicants a quote is offered online immediately, ready for purchase. All you need to do is complete the payment due and you’ll be all set. A copy of your receipt and bond form will then be emailed to you once payment is received. 
Want to chat with a human instead? Call us during normal business hours at (214) 915-2192.

How Are the Conduct Bonds Filed With the Texas Alcoholic Beverage Commission?

The Texas Alcoholic Beverage Commission requires applicants who are applying for a first-time or renewing permits to file their application with the original signed and sealed surety bond to the following mailing address:

Texas Alcoholic Beverage Commission
PO Box 13127
Austin, TX 78711

All permit and license applications can be found on the TABC Forms webpage.

Jet will notify you months prior to a bond’s expiration with the TABC. For annual term bonds, you will need just to make payment and receive the original in the mail shortly afterwards. For those on monthly payment terms, so long as payments come through we will send you an updated bond form to submit to the TABC prior to expiration.

How Do I Cancel My Texas Conduct Bond?

You may cancel your surety bond at any time. All we ask is that you send a written cancellation request to us at [email protected] and we will begin the process. An official termination notice will be sent to the Texas Alcoholic Beverage Commission, and once received by the TABC, the liability of the bond will be released after a 30-day grace period. 

If you no longer need the bond after maintaining a clear record for five years, just let us know to cancel the bond immediately upon expiration. If on monthly subscriptions with Jet, we will stop payments immediately.

How Does a Business Owner Avoid a Conduct Surety Bond Claim?

Businesses that engage in the sale, manufacturing, or distribution of alcoholic beverages in the State of Texas are expected to comply with the regulations set forth in the Texas Alcoholic Beverage Code, as well as any applicable obligations of their license or permit. It is important to note that each license and permit type has its own extensive set of regulations. 

The best way to avoid penalties is to keep up with the ins and outs of these rules and obligations, stay sober and don’t serve underage kids or those three sheets to the wind. The state of Texas put emphasis on not serving kids, hence the enlarged bond limit for alcohol businesses close to schools. And, yes, we are looking at you Texas A&M. 

If the business owner or their employees commits a violation, the Texas Alcoholic Beverage Commission may impose various penalties, such license suspension or revocation and fines.

In cases where the TABC fines you and you are not able to pay the fine in a reasonable time period, a claim will be filed on your bond to cover the fine. The bond may also be used as restitution for litigation costs incurred by the TABC throughout your administrative hearing process.

Jet will defend you as best we can, but you need to be responsive if a claim arises so a case can be made if you are a victim of government malfeasance. It is important to understand that the bond is more like an extension of credit to be tapped into by the State, if necessary. Should Jet make payment to the State, you still are responsible for your actions and still are required to reimburse Jet. 

What Other Surety Bonds Do Texas Alcoholic Beverage Businesses Need?

The Texas Comptroller of Public Accounts may require you to obtain a Mixed Beverage Gross Receipts Tax Bond and a Mixed Beverage Sales Tax Bond. If you have other Alcohol Related Business you may need the TABC Performance or Fee Interest Bond. Just click on the links to find out more details regarding these types of bonds.

Running an alcohol retail operation in Bexar, Dallas, Harris and Tarrant Counties? You may need the Texas Performance Bond for Alcohol Retailers.

Are you a brewer outsourcing production to a brewery? You may need the TABC Fee Interest Bond.

TABC Alcoholic Beverage Business Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: