License & Permit
Seller of Travel Bond
A seller of travel bond is a bond some states require before a travel agency, tour operator, or travel seller can register to sell travel to their residents.
- Required by
- State consumer protection agencies (Florida FDACS, the California Attorney General, Washington Department of Licensing)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond protects travelers who pay for trips that are not delivered. In Florida it runs to the Department of Agriculture and Consumer Services for the benefit of consumers hurt by the seller's fraud, misrepresentation, breach of contract, financial failure, or other violation of the law. A consumer or the state files a claim, and the surety pays valid claims up to the bond amount.
Who needs it
- Travel agencies
- Tour operators and tour brokers
- Vacation certificate sellers
- Online and home-based travel sellers registering in Florida, California, or Washington
What the underwriter looks at
- Annual travel sales volume
- Whether you sell vacation certificates
- Personal and business credit
- Complaint and claim history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much bond does Florida require?
It depends on your certification tier under s. 559.929, Fla. Stat. The lowest tier is up to $25,000, or up to $50,000 if you sell vacation certificates; higher tiers run to $100,000 to $300,000.
Which states require this bond?
Florida, California, and Washington are the main states that require registration with a bond or other security. Hawaii uses a trust account instead. Check each state where your customers live.
Can the bond be waived?
Florida may waive the bond for a seller with at least five consecutive years of clean experience in the state, but not for the higher-tier sellers. The waiver can be revoked.