Texas Warehouse Bonds

Texas Warehouse Bond

Agricultural warehousemen must hold a bond to be able to operate within Texas. The Texas Department of Agriculture (TDA) requires the Grain Warehouse Operator Bond for those managing a grain warehouse, but for those who manage warehouses of other produce, a $5,000 Public Warehouseman Bond must be filed with the County Clerk.

QUOTE

Buy your Public Warehouse Bond now for just $100 or apply now to see what rate you qualify for as a Grain Warehousemen with Jet!

What Is the Price for the Texas Warehouse Bonds?

For a Public Warehouseman Bond, prices start at $100 and are based on the personal credit of the applicant.

For a Grain Warehouse Operator Bond, Jet can offer this bond for as low as $350, but actual rates for the bond can vary, largely in part by the bond limit ranging from $35,000 up to $500,000 and the use of personal credit during the quoting process.

BondBond TermCost
$5,000 Public Warehouse1 Years$100
Grain Warehouse Operator BondVariableUnderwriting Required
Texas Warehouse Bond Prices

The bond limit for a Grain Warehouseman Bond is based on the requirements found in Section 14.301 of the Texas Agriculture Code. The limit is calculated by adding 10 cents per bushel of storage capacity, within a $35,000 minimum to a $500,000 maximum. 

The Grain Warehouse Bond must also account for an operator’s failure to meet the minimum net worth requirements. The difference between the operator’s actual net worth and the larger of the requirements below must also be included in the bond. 

The Public Warehouse Bond Process With Jet

Once you purchase your Public Warehouse Bond with Jet, we will prepare the bond form for you and send it over to you. You will need to file it with the County Clerk of the county where your warehouse is located. You can find the addresses of all 254 County Clerks here.

You will need to maintain the bond during your certification as a public warehouseman. Jet will send you renewal notices when your term is up; just pay for the next term to keep your bond active!

The Grain Warehouse Operator Bond Process With Jet

For a Grain Warehouse Operator, click the button at the top of the page to apply now! Our application will ask for information needed to get you a quote, such as your suggested bond limit, general business information, and a social security number (this is needed to perform a soft credit check but it will not impact your credit score). Your application will be submitted for review and a Jet team member will reach out if additional information, like financial statements, is needed.

When your quote is ready, it will be emailed to you with a link to purchase. After your payment is processed, Jet will prepare the bond form and send it over to you. You will need to sign the bond before mailing it into the TDA. You may email or fax a copy to the TDA to speed up the process but the physical, original copy of the bond will still need to be mailed in. 

The surety bond can be renewed year after year as long as you need it. Jet will send you a renewal notice with a quote based on the information we have on file. If you need to have changes made to your bond (such as the limit being lowered or consolidating additional bonds), now would be a good time to let our team know. You will receive a new quote via email for the appropriate amount of coverage. 

If you need to cancel your bond, email us at [email protected] to get the process started. We will send notice to the TDA, which will hold the bond for an additional 90 days before finalizing the cancellation of the bond. Once Jet is released from the bond obligation, our team will calculate any remaining, unused time from your term into a refund.

How Does a Warehouseman Avoid Bond Claims?

Public Warehouseman: During your time as a warehouseman of wheat, rye, cotton, rice, or other products, you must follow the terms and conditions given in Chapter 14A of the Texas Agriculture Code. Failure to do so may lead to your certificate being revoked, as well as receiving a bond claim. 

If you do receive a claim, let Jet know as soon as possible. We will try to provide a defense, but if the claim is legitimate, Jet will have to pay the injured party up to the full $5,000. However, you will still be held liable for your actions and must pay Jet back. 

Grain Warehouseman: As a grain warehouse operator, you are obligated to comply with Chapter 14 of the Texas Agriculture Code and fulfill the duties of your grain warehouse operator license. This means that you take decent care of the grain that is being stored in your structures. You are liable for damages to the grain if you don’t act as a “reasonably prudent person” would. That means delivering grain to those who have grain stored in the warehouse and maintaining the quality and amount of grain entrusted to you, among other obligations found in Section 14.052. 

Claims can be made by either the TDA or a depositor of grain. The TDA has the right to seek recovery from the bond on behalf of the depositors of grains when a grain warehouse operator seals or abandons a warehouse. If no action is taken within 30 days by the Department, the depositor can seek direct recovery under Section 14.065. Any action on the bond must be taken within two years of the expiration of the license when the cause for the claim occurred. 

Call Jet as soon as possible if you receive a claim filing. Our team will try to defend you against false claims and will check out the claim accusation. If it is valid, Jet will have to pay out the claim — you are still responsible for paying Jet back the amount that was paid out.

Does a Grain Warehouse Operator Need Multiple Bonds?

Perhaps! In certain circumstances, it is possible for a grain warehouseman to have more than one bond on file. As mentioned before, a bond is needed for a public grain warehouse operator license with a limit that is based on storage capacity (10 cents per bushel). If the storage capacity increases during your license term, you will need to file another bond to make sure that you have adequate coverage. Multiple bonds will be allowed only until the end of that term; upon renewal, all bonds will need to be consolidated into one. 

A license applicant that does not meet the minimum net worth requirements will need to offset the breach in coverage through a bond in the amount of the deficiency. The TDA will allow the deficient amount to be included in the license bond to consolidate the number of bonds.

Texas Warehouse 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: