Texas Alcohol Beverage Commission Surety Bonds: A Guide
Sellers of alcoholic beverages need to be bonded to do business in Texas. There are three different types of bonds for alcohol retailers, which ones does your business need?
First comes a Conduct Surety Bond; If your business already holds a Food and Beverage Certificate in Texas, you do NOT need this type of bond.
If you do not hold the certificate for food and beverage however, you are required to get a conduct bond. This bond protects legal regulation pertaining to consumption of alcohol. The bond helps guarantee responsible drinking by those of the legal age. For example, the bond coverage required for a business is $10,000 if within one thousand feet or less from a public school. The bond amount goes down to $5,000 if the business is more than one thousand feet from a school. See the documents for the Conduct Bond on the TABC site.
The second type of bond that may be required is a Performance Bond. This Bond is only required if the business is located in the following counties: Bexar, Dallas, Harris, or Tarrant.
This bond is only required if your Beer and Wine business does not hold a Food and Beverage Certificate. The initial coverage amount for this bond is $2,000, but it could be more if your License has received violation notices from the TABC. Performance bonds guarantee the timely executions of your trade and business in order to enforce ethical business practices. If your business is found to be unethical and damage another party, your bond would pay out to that claim. You may find out more about the performance bond by visiting the TABC site.
The third bond is a Fee Interest Bond; This is only required for Contracted or Alternating Brewers and Manufacturers.
The Fee Interest Bond guarantees the payment of fees imposed during the course of regular business. If you do not pay the fees, then the bond will pay out, and your business will be left to pay the surety company. Essentially, all of these bonds motivate you and your business to operate legally and ethically.
You can get all three of these bonds through the agent Surety1, who are experienced and knowledgeable. We have relationships with several surety markets who can get you the best rates on all three TABC bonds.
Call 877-654-2327 to get started!